MTTC 103 Elementary Practice

Question: 1 / 400

Which of these factors does not typically lead to economic growth?

Increased consumer spending

Technological advancements

Government regulations

Government regulations generally do not lead to economic growth in the same way that the other factors can. While some regulations can create a stable environment for businesses and protect consumers, overly burdensome regulations can hinder economic activity, stifle innovation, and limit investment. In contrast, increased consumer spending stimulates production and employment, technological advancements foster innovation and efficiency, and investment in infrastructure supports overall economic productivity by improving transportation and communication networks. Thus, while regulations have their place in ensuring safety and market fairness, they can also act as a barrier rather than a catalyst for economic growth, especially when they are excessive or improperly designed.

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Investment in infrastructure

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