Question

All of the following policies are ways for a country to promote long-run economic growth except

A) increasing vaccinations against infectious diseases.
B) undergoing political reform to decrease corruption.
C) enacting stronger laws toprotect property rights.
D) imposing stricter regulations to limit foreign direct investment.

Answer 1

Answer: Option D

Explanation: In simple words, increase in the market value of goods and services produced in the economy over time is called long run economic growth .

A. Better medical facilities upgrades human resource in the economy thus increasing the quality of products produced resulting in increase in value.

B. Decreasing corruption will result in more capital resources in the economy and better facilities and technology resulting in economic growth.

C. Stronger property rights will protect the common individuals as well as helps in developing private sector in the economy, thus, economic growth.

D. Foreign direct investment brings the capital from foreign lands in the economy thus imposing regulations will decrease capital investment and will hinder economic growth.