Contemporary governments promote business development by:

• A. eliminating all forms of public infrastructure
• B. imposing higher tariffs on domestic goods
• C. providing subsidies or tax incentives to firms
• D. restricting access to credit for new businesses

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the role of government in business development. Governments typically aim to create an environment that encourages firms to grow and innovate.
2. Step 2: Analyze each option given in the problem. Eliminating public infrastructure would likely harm businesses because infrastructure supports production and distribution.
3. Step 3: Consider the impact of imposing higher tariffs on domestic goods. Higher tariffs usually protect domestic industries but can also increase costs and reduce competitiveness.
4. Step 4: Recognize that providing subsidies or tax incentives reduces costs for firms, encouraging investment and expansion, which aligns with promoting business development.
5. Step 5: Note that restricting access to credit for new businesses would limit their ability to start or grow, which contradicts the goal of promoting business development.