Which of the following will most likely promote long-run economic growth?

• A. Limiting access to new technologies
• B. Increasing investment in physical capital such as machinery and infrastructure
• C. Reducing spending on education and worker training
• D. Imposing higher tariffs on imported raw materials

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of long-run economic growth, which refers to the sustained increase in a country's productive capacity and output over time, often measured by growth in real GDP.
2. Step 2: Recognize the main drivers of long-run economic growth, which typically include increases in physical capital (machinery, infrastructure), human capital (education, skills), technological progress, and improvements in productivity.
3. Step 3: Analyze each option in terms of its impact on these drivers: limiting access to new technologies would hinder technological progress; reducing spending on education and worker training would reduce human capital; imposing higher tariffs on imported raw materials could increase costs and reduce efficiency.
4. Step 4: Identify that increasing investment in physical capital such as machinery and infrastructure directly enhances the productive capacity of the economy, enabling more output and supporting sustained growth.
5. Step 5: Conclude that among the options, increasing investment in physical capital is the most likely to promote long-run economic growth because it expands the economy's ability to produce goods and services over time.