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:

Vestibular Sense

The sense of body movement and position, including the sense of balance.

Inner Ear

The innermost part of the ear, containing the cochlea, vestibule, and semicircular canals, crucial for hearing and balance.

Receptors

Specialized cells or proteins in the body that bind to specific molecules like neurotransmitters, hormones, or drugs, triggering a physiological response.

Muscles

Tissues in the body that have the ability to contract, thus enabling movement and support of various body functions.