Cantlivia is a small and poor nation, but its current prime minister has a desire to create more wealth for her citizens. The prime minister has received recommendations from several of her advisors. Which of the following recommendations is likely to create the most wealth for Cantlivia?
A) Acquire more land by invading a neighboring country that is even poorer and weaker than Cantlivia.
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 Cantlivia businesses from foreign competition.

Question

Quizplus · Accepted Answer

The factors of production that seem to contribute most to the generation of wealth are entrepreneurship and knowledge. Thus, one key to promoting wealth creation is to foster entrepreneurship.

Cantlivia Is a Small and Poor Nation, but Its Current