Which of the Following Statements Best Describes the Characteristics of Accumulating

question 43

Multiple Choice

Which of the following statements best describes the characteristics of accumulating physical capital and human capital?

• A)Physical capital accumulation is subject to decreasing marginal returns, but human capital accumulation is not.
• B)Both physical capital accumulation and human capital accumulation are characterized by increasing marginal returns.
• C)Human capital accumulation is subject to decreasing marginal returns, but physical capital accumulation is not.
• D)Both physical capital accumulation and human capital accumulation are characterized by decreasing marginal returns.
• E)Neither physical capital accumulation nor human capital accumulation is characterized by decreasing marginal returns.

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Definitions:

Endowed

Having been provided or supplied with a particular attribute, resource, or piece of knowledge naturally or by circumstance.

Going Prices

Refers to the current prices at which goods or services are being sold in the market.

Net Demander

An entity or individual that consumes or requires more of a good or service than they produce or provide.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, contrary to what happens with a normal good.