Questions 22-24. Choose A, B or C as the best answer. 22. According to the speaker, a growing economy allows governments to give greater support to:

Question

BlackTom AI · Accepted Answer

A growing economy increases government revenues and therefore the budgetary capacity to fund services and investments.

1) Relevant knowledge points and concepts
- Economic growth raises national income (GDP). With fixed or proportional tax systems, higher GDP generates higher tax revenues. 
- “Fiscal space” describes the government’s ability to spend on priorities without borrowing unsustainably. More revenue or fiscal space allows greater public spending. 
- Public projects (infrastructure, schools, hospitals) are typical areas where governments directly allocate increased funds, unlike private-sector economic activity or innovation which are mostly market-driven.

2) Step-by-step reasoning
- If GDP grows, taxable incomes, corporate profits and consumption rise. 
- Higher taxable bases -> higher tax receipts even if tax rates do not change. 
- Those additional funds can be appropriated in the budget for government programs. 
- The speaker’s claim links a growing economy to the government’s ability to “give greater support,” implying direct public spending choices.

3) Simple numerical illustration
- Suppose GDP = 100 and average tax take = 20% → tax revenue = 0.20 × 100 = 20. 
- If GDP grows 5% to 105, tax revenue = 0.20 × 105 = 21. 
- Extra revenue = 1 unit, available for public spending or investment.

4) Why the correct answer is correct
- Greater government revenues from growth are most directly used to expand or improve public projects (infrastructure, services, public investments). The phrase “give greater support to” matches government-funded public projects.

5) Why the other options are incorrect
- a. Economic activity: Economic growth itself is the measure, not something governments “support more” as a direct result of growth; governments may enable activity, but the speaker links growth to supporting public spending. 
- b. Technological innovation: Innovation is often driven by private R&D and firms; while governments can fund innovation, the more immediate and common avenue for increased government support is public projects rather than private-sector technological innovation.

6) Conclusion
Therefore the best answer is c. Public projects, which matches the provided answer.

Questions 22-24. Choose A, B or C as the best answer. 22. According to the speaker, a growing economy allows governments to give greater support to:Single choice

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