Final answer:
Investing in Education and Workforce Development is the most effective policy for boosting growth and living standards in a poor country over the long run, as it leads to a skilled and knowledgeable workforce, increased productivity, innovation, and higher living standards in the long term.
Step-by-step explanation:
Investing in Education and Workforce Development is the most effective policy at boosting growth and living standards in a poor country over the long run. By investing in education, a country can develop a skilled and knowledgeable workforce, which is essential for economic development. This can lead to increased productivity, innovation, and higher living standards in the long term.
Building more prisons to reduce crime rates is not an effective policy for boosting growth and living standards. It primarily focuses on addressing the consequences of social issues rather than tackling the root causes of poverty and underdevelopment.
Increasing taxes on small businesses can have negative effects on economic growth as it can discourage investment, innovation, and job creation. It may also lead to a decrease in the overall competitiveness of the economy.
Implementing trade restrictions can hinder economic growth by limiting access to international markets and restricting trade opportunities. Free trade is generally associated with increased economic growth and improvements in living standards.