According to conservatives, which of the following will be most likely to increase the productivity of capital?
A) More research and development of new technology by government.
B) More research and development of new technology by business.
C) Increasing the level of gross investment.
D) Increasing the rate of depreciation.

Question

Quizplus · Accepted Answer

Conservatives generally believe in limited government intervention and promote free market principles. Therefore, they are more likely to believe that businesses should be responsible for research and development of new technology as opposed to government. This would increase the productivity of capital by improving the efficiency of production processes and providing businesses with a competitive edge. Options A, C, and D may also have some impact on increasing productivity of capital, but they may not align with conservative ideology as they involve government intervention or policies that may increase business costs.

According to Conservatives, Which of the Following Will Be Most