Which of the Following Statements Best Describes the Characteristics of Accumulating

question 5

Multiple Choice

Which of the following statements best describes the characteristics of accumulating physical capital and human capital?

• A) Both physical capital accumulation and human capital accumulation are characterized by decreasing marginal returns.
• B) Physical capital accumulation is subject to decreasing marginal returns, but human capital accumulation is not.
• C) Human capital accumulation is subject to decreasing marginal returns, but physical capital accumulation is not.
• D) Neither physical capital accumulation nor human capital accumulation is characterized by decreasing marginal returns.
• E) Both physical capital accumulation and human capital accumulation are characterized by increasing marginal returns.

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Definitions:

Electronic Transactions

Deals or exchanges of goods, services, or information conducted over electronic systems like the Internet or other computer networks.

Prudent Businessperson

An individual who exercises care and diligence in making decisions or taking actions in the context of business operations.

Small Business

An independently owned and operated company that is limited in size and in revenue depending on the industry.

Illegal Contracts

Agreements that are not enforceable by law due to their involvement with illegal activities or being against public policy.