To increase economic development and productivity, a country would likely take actions that promote investment and trade. Among the options you provided, the most effective choices would be:
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Increase capital goods - Investing in capital goods (machinery, tools, equipment) can enhance the productive capacity of an economy, leading to increased productivity and economic growth.
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Lower tariffs - Reducing tariffs can encourage trade by making imported goods cheaper, which can lead to increased competition, a greater variety of goods for consumers, and potentially lower prices. This can also encourage domestic producers to become more efficient to compete with foreign goods.
The other options mentioned (C and D) would generally have a negative impact on economic development and productivity:
C. Restrict literacy and education - Limiting education would hinder the development of a skilled workforce, which is essential for productivity and innovation.
D. Encourage trade barriers - Imposing trade barriers typically leads to less trade, reduced competition, and higher prices for consumers. This can stifle economic growth rather than promote it.
Therefore, the best approaches for increasing economic development and productivity would be to increase capital goods and lower tariffs.