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

• A. Improving infrastructure such as roads and bridges
• B. Imposing high tariffs on imported capital goods
• C. Providing tax incentives for research and development
• D. Investing in public education

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of per capita economic growth, which refers to the increase in the average economic output (GDP) per person over time, often driven by improvements in productivity and capital accumulation.
2. Step 2: Analyze how each policy affects factors of production and productivity: improving infrastructure reduces costs and increases efficiency; tax incentives for R&D promote innovation; investing in education enhances human capital.
3. Step 3: Consider the role of imported capital goods, which are physical assets like machinery and technology that can boost productivity when used in production.
4. Step 4: Evaluate the impact of imposing high tariffs on imported capital goods, which tends to increase the cost of these inputs, potentially reducing investment in productive capital and slowing technological progress.
5. Step 5: Conclude that among the options, imposing high tariffs on imported capital goods is most unlikely to encourage per capita economic growth because it restricts access to important productive resources and technology.