Nolivia is a small and poor nation, but its current president has a genuine desire to create more wealth for Nolivia citizens. The president has received recommendations from several of her advisors. Which of the following recommendations is likely to create the most wealth for Nolivia?
A)Acquire more land by invading a neighboring country that is even poorer and weaker than Nolivia.
B) Use foreign aid from other nations to purchase more tools and machinery.
C)Establish a business environment that promotes and rewards entrepreneurship.
D)Establish barriers to trade to protect Nolivia businesses from foreign competition.

Question

Quizplus · Accepted Answer

Establishing a business environment that promotes and rewards entrepreneurship is likely to create the most wealth for Nolivia in the long term. This will encourage individuals to start businesses and create jobs, thereby increasing economic growth and prosperity. Acquiring more land through invasion could lead to sanctions and other economic consequences, while using foreign aid to purchase tools and machinery may not address the underlying issues with Nolivia's economy. Establishing trade barriers could limit access to foreign markets and harm Nolivia's international trade relationships.

Nolivia Is a Small and Poor Nation, but Its Current