Question

A state wants to increase its per capita income. Which policy would be most effective in achieving this goal?

• A. Lowering taxes on all goods and services.
• B. Investing in education and technology to boost productivity.
• C. Encouraging a higher birth rate.
• D. Reducing government spending across all sectors.

Answer 1

Answer:

B. Investing in education and technology to boost productivity.

• By investing in education and technology, a state can improve the skills of its workforce, leading to higher productivity and, in turn, higher incomes and GSDP.