Which Best Explains the Relationship Between Physical Capital and the Level

question 85

Multiple Choice

Which best explains the relationship between physical capital and the level of wealth in a country?

• A) As countries become wealthier,they acquire more physical capital.
• B) As countries acquire more physical capital,they become wealthier.
• C) Wealthier countries invest less in physical capital.
• D) Poor countries can only become wealthier if they acquire more physical capital.
• E) A country does not need physical capital to increase wealth.

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Definitions:

Per-Unit Taxes

Taxes that are charged on a per-item basis, often levied on specific goods or services, such as gasoline or cigarettes.

Medicare & Medicaid

Federal programs in the United States that provide health coverage; Medicare serves older adults and some younger disabled individuals, while Medicaid assists low-income people.

Progressive Tax Structure

A tax system in which the tax rate increases as the taxable amount or income increases, placing a heavier burden on those who can afford to pay more.

Marginal Tax Rate

The rate at which an additional dollar of income is taxed.