In an economy experiencing a significant digital transformation with widespread adoption of remote work, the government decides to introduce tax incentives for companies that maintain or create jobs in rural and less developed regions. What is the most likely short-term impact of this policy on regional economic disparities and urban employment levels? A) A reduction in regional economic disparities and a decrease in urban employment levels. B) Little change in regional economic disparities, but an increase in urban-rural migration. C) A moderate reduction in regional economic disparities and minimal impact on urban employment levels. D) Increased regional economic disparities due to a concentration of skilled jobs in urban areas.

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter18: Income Distribution And Poverty
Section: Chapter Questions
Problem 3QFR
icon
Related questions
Question

Question: In an economy experiencing a significant digital transformation with widespread adoption of remote work, the government decides to introduce tax incentives for companies that maintain or create jobs in rural and less developed regions. What is the most likely short-term impact of this policy on regional economic disparities and urban employment levels? A) A reduction in regional economic disparities and a decrease in urban employment levels. B) Little change in regional economic disparities, but an increase in urban-rural migration. C) A moderate reduction in regional economic disparities and minimal impact on urban employment levels. D) Increased regional economic disparities due to a concentration of skilled jobs in urban areas.

Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Unemployment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage