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 a boost in productivity, which can lead to economic growth. It can also encourage competition and innovation in the market, leading to long-term growth rather than short-term gains from other options such as placing a higher tax on firms. Paying a competitive wage can also contribute to economic growth, but it may not be enough on its own. Removing legal protection for firms can harm economic growth as it may discourage businesses from investing in the economy.

The President of Tunisia Asks You to Suggest an Idea