Question 22. Choose A, B or C as the best answer. 22. According to the speaker, a growing economy allows governments to give greater support to:

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BlackTom AI · Accepted Answer

First, let's restate the question and the provided options to ensure clarity.
Question: According to the speaker, a growing economy allows governments to give greater support to:
Option a) Economic activity this causes the economy to grow. This phrasing is circular and tautological; it effectively says that activity causes growth, which does not explain how government support is increased or what specific areas receive support. It also conflates causation with a general statement about growth, making it vague as a description of policy channels.
Option b) Technological innovation the speaker talks about private investment in technological innovation. While private investment in technology is important, the prompt focuses on how a growing economy enables governments to give greater support, i.e., the fiscal space or revenue base that allows public spending. This option shifts the focus to private activity rather than government support derived from increased public finances as economies expand.
Option c) Public projects "increased economic activity means higher tax revenues, allowing governments to invest in public services and infrastructure. It also encourages private technological advancements and innovation". This option directly ties economic growth to higher tax revenues and expanded government capacity to fund public projects, services, and infrastructure. It also acknowledges the multiplier effect: public investment can spur further private investment and innovation, aligning with the typical view that growth expands the government’s fiscal space for public goods.
Now, evaluate each option in terms of the underlying concept of how a growing economy expands public support:
- For option a, the reasoning is circular and does not identify a mechanism by which growth enables greater government support. It asserts a consequence (growth) without explaining policy channels or fiscal feasibility, which weakens its plausibility as an answer.
- For option b, the emphasis on private investment in technology overlooks the central premise about government capacity to fund public goods. It treats technological innovation as a private outcome rather than a policy-enabled channel that grows with tax revenue and public budgets, making it less aligned with the stated idea.
- For option c, the explanation links increased economic activity to higher tax revenues, which expands the government's ability to finance public projects. It also mentions the spillover effect on private sector innovation, which is a reasonable and commonly discussed consequence of public investment in infrastructure and services.
In summary, option c best matches the idea that economic growth enlarges the government's fiscal space to fund public projects and services, while also potentially stimulating private innovation through the improved environment and infrastructure. The other options either rely on circular reasoning or misplace the focus on private activity rather than the public funding channel described.

Question 22. Choose A, B or C as the best answer. 22. According to the speaker, a growing economy allows governments to give greater support to:

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