Which of the following policy levers definitely enhances productivity?
A)Higher taxes.
B)Development of human capital.
C)More government regulation.
D)A higher labor to capital ratio.

Question

Quizplus · Accepted Answer

Developing human capital through education, training, and skill-building is a well-established policy lever that has been shown to enhance productivity in individuals and ultimately in the economy as a whole. Higher taxes and more government regulation can have mixed effects on productivity, while a higher labor to capital ratio may or may not enhance productivity depending on the specifics of the situation.

Which of the Following Policy Levers Definitely Enhances Productivity