Which of the Following Statements Is True

question 99

Multiple Choice

Which of the following statements is true?

• A)The quantity of natural resources per worker can influence productivity.
• B)Technological knowledge and human capital are closely related.
• C)Over long periods of time,the prices of most natural resources are stable or falling,relative to other prices.
• D)All of the above are correct.

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Definitions:

Allocative Efficiency

A state of the market where resources are allocated in a way that maximizes the net benefit to society, ensuring that every good or service is produced up to the point where the last unit provides a benefit equal to its cost of production.

Productive Efficiency

A situation where the economy or a production process is unable to produce more of one good without reducing the production of another good, using available resources in the best way.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls, reflecting a direct relationship between income and demand.

Competitive Market

A market structure characterized by a large number of buyers and sellers, homogenous products, and no single buyer or seller can influence the market price.