In Economics, the Creation of Capital Is Referred to as

question 78

Multiple Choice

In economics, the creation of capital is referred to as

• A) investment.
• B) comparative advantage.
• C) consumption.
• D) allocation.

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Definitions:

Plant Size

The scale or capacity of a factory or production facility, which can affect production efficiency, costs, and the ability to meet demand.

Short Run

A period in economics during which the quantities of at least one input, such as plant size, cannot be changed.

Variable

An element, feature, or factor that is liable to vary or change.

Marginal Product

This measures the additional output that is produced by adding one more unit of a specific input, keeping all other inputs constant.