A Possible Externality Associated with the Process of Accumulating New

question 85

Multiple Choice

A possible externality associated with the process of accumulating new capital is that:

• A) a reduction in labor productivity may occur.
• B) new production processes may be devised.
• C) old capital may be made more productive.
• D) the government may need to adopt an industrial policy.

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Definitions:

Behavioral Sciences

Encompass a range of disciplines, including psychology, sociology, and anthropology, that explore the activities and interactions among human beings.

Political Science

the study of governments, public policies, and political processes, systems, and political behavior.

Behavioral Sciences

The study of human and animal behavior through observation and scientific research, aiming to understand, predict, and address behaviors.

Social Psychology

The social science that blends concepts from sociology and psychology and focuses on how people influence each other in a social setting.