Question

Which may lead to lower productivity because of a lack of incentives?

Answer 1

Government  subsidies ,lead  to  lower  productivity  because  of   lack  of  incentives.
     Government  subsidy  are  money  paid   by  the  government  to  help  an  organization  or  industry   to  reduce   its  cost  of  its  product. The  subsidies  shift  supply  curve  to  the  right  due  to  lower  price  .   When  government  subsidies  firm  it  reduces  incentives   for  firm   to  cut  costs.

Answer 2

I believe the answer is Government subsidies. A subsidy is the form of cash payment or a tax reduction. It is normally given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or economic policy. Tax subsidy; the government can create the same outcome through selective tax breaks as through cash payment. For example, suppose a government sends monetary assistance that reimburses 15% of all health expenditures to a group that is paying 15% income tax. Tax subsidies are also known as tax expenditures.