Question

Upon research or via personal observation, provide an example of a barrier that has restricted investment in technology, human capital, or capital accumulation. Your answer can't be simply "price/cost". In most cases, policies / intervention by government will provide examples here.

Answer 1

Government policies can create barriers to investment in technology, human capital, and capital accumulation through taxes and regulations that increase costs for businesses.

Step-by-step explanation:

Government policies can impact the investment in technology, human capital, and capital accumulation by creating barriers such as taxes, regulations, and subsidies.

For instance, taxes imposed by governments on certain products like alcoholic beverages can increase the cost of production, which reduces the supply and potential investment in that industry.

Similarly, regulations that require firms to spend money on environmental or workplace safety measures can increase their costs and restrict their investment in technology and human capital.