Hypotheses to Explain the Positive Correlation Between Factor Accumulation and Production

question 65

Multiple Choice

Hypotheses to explain the positive correlation between factor accumulation and production efficiency include each of the following except:

• A) the quality of a nation's institutions influences both factor accumulation and production efficiency.
• B) capital accumulation causes greater production efficiency.
• C) efficient economies make capital accumulation unnecessary.
• D) an efficient economy encourages capital (including human capital) accumulation.

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Definitions:

Direct Liability

Liability that is attributed to an individual or entity due to their own actions or negligence, not through the actions or negligence of others.

Respondeat Superior

A legal doctrine that holds employers or principals responsible for the actions of their employees or agents, conducted within the scope of their employment or agency.

Liability

The state of being responsible for something, especially in terms of legal or financial obligations.

Express Authority

is explicitly granted permission or power given to an agent or representative by a principal or employer to act on their behalf.