In order to increase economic development and productivity, which of the following might a country do?
(1 point)
Responses
increase capital goods
increase capital goods
lower tariffs
lower tariffs
restrict literacy and education
restrict literacy and education
encourage trade barriers
increase capital goods
lower tariffs
encourage trade barriers
To increase economic development and productivity, a country could consider the following steps:
1. Increase capital goods: Investing in capital goods, such as machinery, equipment, and infrastructure, can enhance productivity by improving production processes. This includes both public and private sector investments.
2. Lower tariffs: By reducing tariffs, a country can promote international trade and increase access to a wider market. Lower tariffs can lead to increased exports, import substitution, and overall economic growth.
3. Promote literacy and education: Rather than restricting literacy and education, a country should focus on expanding access to quality education and promoting literacy. Educated individuals are more likely to be productive and innovative, leading to economic development.
4. Reduce trade barriers: Encouraging trade barriers, such as tariffs, quotas, or excessive regulations, can hinder economic development. Instead, countries should focus on liberalizing trade policies, fostering competitive markets, and facilitating access to global markets.