Question

Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?a. higher tax ratesb. a higher rate of investmentc. a smaller trade sectord. greater use of taxation to transfer income from the rich to the poor

Answer 1

Answer:

A) A higher rate of investment

Explanation:

A higher rate of investment means that there will improvements in the capital and technology that the economy uses. In other words, with more investment, the economy will become more productive, including labor productivity.

Living standards depend largely on the productivity of the economy, so as the economy produces more output, its citizens earn a higher income.