Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
A) The development of strong labor unions.
B) A sharp increase in the legal minimum wage.
C) An increase in expenditures on education and capital investment.
D) Rapid growth rate of the money supply.

Question

Quizplus · Accepted Answer

Increasing expenditures on education and capital investment can lead to the development of industries, infrastructure, and human capital, which can have long-term positive effects on the standard of living. Strong labor unions and a sharp increase in the legal minimum wage may lead to short-term gains for workers, but can also lead to inflation and reduced competitiveness for businesses, making it difficult for the country to attract foreign investment. Rapid growth rate of the money supply can also lead to inflation and currency devaluation, which can have negative effects on the economy and the standard of living.

Which of the Following Would Be Most Likely to Improve