Question

Question. Which of the following policies would economists consider to be actions by a DVC government that will improve growth prospects?

Choose one or more answers from the choices shown.

a. Helping to extend the banking system to the rural poor.

b. Passing high tariffs against foreign products.

c. Constructing better ports, roads, and Internet networks.

d. Charging high fees for public elementary schools.

Short answer

The correct options include option a and option c.

Step-by-step solution

Explanation for the correct options

Governments have an important role in promoting economic growth in a country.The extension of banking facilities to the rural areas will help in the generation of rural credit in the economy.The increased credit generation in the rural economy will lead to the development in rural regions, and banks also provide loans at a minimal rate. Gradually it will help the economy of the nation.

Infrastructural developments are one of the important factors that influence the development and economic growth of a nation. The roads, ports, and internet networks l help the country to attain growth in several ways. Roads and ports will help in easy transportation of goods and services, which will attract more investments in the economy.

Explanation for incorrect options

Imposing high tariffs on a foreign product will not help in the growth of the economy. It might result in an increase in the price of those imported goods in the economy, and purchasing power of the individuals will decrease as a result of this. So, the option b is incorrect.

Human resources are one of the factors that are considered as an investment in the future growth of a nation. Education is one such human resource, and charging high fees will make education difficult to achieve for those who are poor. So the option d is also incorrect.