Additional Capital Makes Its Best Contribution to Economic Growth by

question 28

Multiple Choice

Additional capital makes its best contribution to economic growth by

• A)Replacing labor.
• B)Enhancing labor productivity.
• C)Allowing service industries to replace manufacturing industries as primary employers.
• D)Giving savers more money to put into investment.

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Definitions:

Repeated Play

This refers to a situation in game theory where a game is played multiple times by the same participants, allowing for strategies that consider past outcomes.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and direct provisioning of goods.

Maximin Strategy

In game theory, a strategy chosen to maximize the minimum gain that can be earned.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.