Choose the word that best fits the blank: The government enacted new tax exemptions to ______ private sector investment into the southern development zone.
Answer and explanation
Correct answer: A. incentivize
- Step 1: Analyze policy rationale: Tax exemptions serve as financial rewards or encouragement.
- Step 2: Define 'incentivize': To motivate or encourage someone to do something through incentives.
- Step 3: Select 'incentivize'.
Answer
incentivize.
Why not the others: 'penalize', 'prohibit', and 'curtail' mean to punish, forbid, or restrict, which contradicts tax exemptions.
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