Question

Which of the government policies below is most unlikely to encourage per capita economic growth?

the use of tax revenues for infrastructure investment and capital formation

promotion of education and training programs for workers

special subsidies for capital-intensive forms of production

high taxes and new regulations on companies that spend a lot on new investment projects

Answer 1

GDP per capita is a measure of a country's economic output that accounts for its number of people. It divides the country's gross domestic product by its total population. That makes it the best measurement of a country's standard of living.

ans high taxes and new regulations on companies that spend a lot on new investment projects

This policy is unlikely to increase the per capita economic growth. the higher taxes will discourage the production and thus help in decreasing the total output in the economy. if companies invest in new projects it is good for the economy. they should be supported by the government. this will encourage infrastructure building and lead to high levels of growth.