Question

Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the fishing industry? Check all that apply. Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishing Offering free public education to every worker in the country Imposing restrictions on foreign ownership of domestic capital

Answer 1

Answer:

Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts

Explanation:

Productivity increases when human capital increases due to higher education and training, when physical capital increases due to higher investments or when new technological breakthroughs increase productivity.

By encouraging savings, investments will increase as well as physical capital which results in an increase in productivity.