Which of the Following Is True

question 77

Multiple Choice

Which of the following is true?

• A)In a competitive capital market, private investors have a strong incentive to evaluate projects carefully and allocate their funds toward those projects expected to yield the highest rates of return.
• B)In a competitive environment, profitable investment projects will tend to increase the wealth of the nation.
• C)When investment funds are allocated by governments (rather than capital markets), political clout rather than the expected rate of return will generally determine which projects are undertaken.
• D)All of the above are correct.

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Definitions:

Accretionary Prism

A wedge-shaped mass of sediment and rock scraped off the top of a downgoing tectonic plate at a convergent plate boundary.

Displaced Granitic Rocks

Granitic rocks that have been moved from their original position by geological forces, often resulting in altered landscapes.

Continents

Large landmasses on Earth's surface, distinguished by convention rather than any strict criteria, typically identified by geographical and cultural factors.

Continental Shield

Large geographical areas composed of ancient, stable, and relatively flat Precambrian rock that form the cores of continents.