The president of Tunisia asks you to suggest an idea to improve the economy's growth without worrying about decreasing returns. You suggest:

Question

Quizplus · Accepted Answer

Offering firms an incentive to produce new ideas can lead to innovation and increase productivity, which can contribute to economic growth. This approach aligns with the principles of the knowledge economy, which emphasizes the importance of creativity and innovation in driving economic prosperity. Paying a competitive wage can also be beneficial, but it may not necessarily lead to growth if it does not stimulate innovation or productivity. Placing a higher tax on firms or removing legal protection for firms can discourage investment and hinder growth.

The President of Tunisia Asks You to Suggest an Idea