Which of the Following Is a Reason Why a Greater

question 111

Multiple Choice

Which of the following is a reason why a greater capital stock can increase investment?
I. A greater capital stock is likely to lead to more investment because further increases in the
Demand for investment tend to lower the cost of capital.
II. A greater capital stock is likely to lead to more investment since there will be more capital to replace.
III. A higher level of capital stock encourages investment in new capital because capital becomes obsolete at a faster rate.

• A) I and II only
• B) II and III only
• C) II only
• D) I, II, and III

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Definitions:

Environmental Problems

Issues affecting the natural world, often caused by human activities, including pollution, climate change, deforestation, and loss of biodiversity.

Social Problems

Issues that adversely affect an individual's or group's well-being within a society, often requiring collective action for resolution.

Demographic Transition

A model describing the transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Industrialized

Characterized by the development and growth of industries on a wide scale, often associated with technological innovation and mass production.