Country M hopes to encourage economic growth by investing in which of the following?

• A. increasing tariffs on imported goods
• B. reducing government spending on public health
• C. infrastructure such as roads and bridges
• D. restricting access to education

Answer: (C)

Verified step by step guidance

1. Understand the role of government investment in economic growth: Investments in infrastructure, such as roads and bridges, typically improve productivity by reducing transportation costs and facilitating trade and commerce.
2. Analyze the impact of increasing tariffs on imported goods: While tariffs protect domestic industries, they can also lead to higher prices and reduced efficiency, which may hinder economic growth rather than encourage it.
3. Consider the effects of reducing government spending on public health: Lower spending on public health can negatively affect the workforce's health and productivity, which is generally detrimental to economic growth.
4. Evaluate the role of education access: Restricting access to education limits human capital development, which is crucial for long-term economic growth and innovation.
5. Conclude that investing in infrastructure is the most effective option among the choices because it directly supports economic activities and growth by improving the physical framework necessary for production and trade.