A government policy that would raise the rate of productivity growth is
A)shifting infrastructure expenditures to the private sector.
B)taxing expenditures on research and development.
C)reducing the government budget surplus.
D)improving human capital development.

Question

Quizplus · Accepted Answer

Improving human capital development, such as investing in education and training programs, is one of the most effective ways to increase productivity growth. It can lead to a more skilled and knowledgeable workforce that is capable of producing more output per hour worked. Shifting infrastructure expenditures to the private sector and taxing expenditures on research and development are unlikely to have a significant impact on productivity growth, and reducing the government budget surplus may not be desirable or feasible depending on the overall economic circumstances.

A Government Policy That Would Raise the Rate of Productivity