Question

Empirically we can see that 'a rising tide' lifts …

Select one:

a. all boats, as all of humanity eventually gains from economic growth.

b. all boats, as the poor gain disproportionately from economic growth since they start off a low base.

c. some boats, as the trickle down effect often fails to reach those most in need.

d. some boats, as those who do not wish to advance economically simply cannot be helped.

Answer 1

Answer: Option C

The concept of "rising tide lifts all boats" implies that all the individuals in the economy gain something out of an improving economy. Although this concept seems utopian, the governments deploys policies to achieve closest to the theoretical claim above. But empirically, rising tides lift some boats and leaves the others aground due to the trickle down effect. As a matter of fact, these left out people are often the most needy ones of this mentioned economic prosperity.

Hope this helps. Do hit the thumbs up. Cheers!