Question

.Cantlivia is a small and poor nation, but its current prime minister has a desire to create more wealth for her citizens. The prime minister has received recommendations from several of her advisors. Which of the following recommendations is likely to create the most wealth for Cantlivia?

Multiple Choice

Acquire more land by invading a neighboring country that is even poorer and weaker than Cantlivia.
Use foreign aid from other nations to purchase more tools and machinery.
Establish a business environment that promotes and rewards entrepreneurship.
Establish barriers to trade to protect Cantlivia businesses from foreign competition.

Answer 1

Establish a business environment that promotes and rewards is the choice which the Prime Minister likely to choose.

Step-by-step explanation:

The motto here is to increase the wealth of the country.

Option 1: Invading other countries is unethical and also, it cannot assure that, Cantlivia will improve. The reason is the country which the option says is poorer than Cantlivia, so point of growth could be seen.

Option 2: Already the country economy is down, so purchasing new tools is not possible hence this option is invalid.

Option 3: We can increase wealth only by creating business and creating entrepreneurs. So this is the right choice.

Option 4: Creating a barrier will actually slow down wealth. So this option is not right.