Justify the Claim of Economists That Capital Is Efficiently Allocated

question 39

Essay

Justify the claim of economists that capital is efficiently allocated in competitive markets.

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Definitions:

Internal Characteristics

Traits or features that originate within an individual or entity, defining their innate qualities or attributes.

Dependency Theorists

Scholars who argue that economic disparities between nations arise from the exploitation of poorer countries by wealthier ones, leading to a state of dependency.

Multinational Corporations

Entities that operate in multiple countries beyond their home base, usually to maximize market reach and optimize production costs.

Rich Countries

Nations with high gross domestic product (GDP) per capita, indicating a high level of economic prosperity and standard of living.