Practice mode Comparative GDP

Which of the following should a government NOT do if it wants to increase economic growth?

Correct answer A. Nationalise major industries

Explanation

Nationalisation weakens property rights and competitive incentives, which tends to discourage investment and efficiency. The other policies all add to capital, technology or trade gains.

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Which of the following should a government NOT do if it wants to increase economic growth?

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Which of the following should a government NOT do if it wants to increase economic growth?

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