Which of the Following Statements Is False About Capital in an Industry

question 131

Multiple Choice

Which of the following statements is false about capital in an industry?

• A)An industry experiencing economic profits gains capital.
• B)Increased government taxation of an industry prevents some capital movement.
• C)The movement of capital occurs in the short run and the long run.
• D)Market forces cause capital to move where it is most highly valued.
• E)The movement of capital is determined by how profitable industries are.

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