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Canada Economic System & Factors That Influence Growth — 13 Questions
Norwood, Kamyron

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Question 8.



The Canadian government has few barriers to starting new businesses. Taxes on small businesses are relatively low, and the government enforces strong private property protections. What do these policies most encourage?

increased entrepreneurship


emigration from Canada


restrictions on trade


investment in capital goods



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increased entrepreneurship

These policies lower startup costs and risk and increase expected returns, encouraging more people to start businesses.