Which of the Following Statements Is Most Correct

question 123

Multiple Choice

Which of the following statements is most correct?

• A) The financial crisis and recession of 2007-2009 had little effect on the ability of borrower firms to obtain short-term financing and for firms with surplus funds to invest in short-term instruments.
• B) The financial crisis and recession of 2007-2009 had strong effects on the ability of borrower firms to obtain short-term financing and for firms with surplus funds to invest in short-term instruments.
• C) The financial crisis and recession of 2007-2009 had strong effects on the ability of borrower firms to obtain short-term financing but made it easy for firms with surplus funds to invest in short-term instruments.
• D) The financial crisis and recession of 2007-2009 had little effect on the ability of borrower firms to obtain short-term financing but made it easy for firms with surplus funds to invest in short-term instruments.

Distinguish between physical capital and human capital.

Understand the concept of constant returns to scale in production functions.

Understand the basic components and representations of a production function.

Grasp the concept of the catch-up effect and its implications on economic growth.