Investment in Both Physical and Human Capital Enhances Economic Growth

question 41

Multiple Choice

Investment in both physical and human capital enhances economic growth because it:

• A) increases consumption during the current period.
• B) makes it possible for individuals to produce more goods and services per hour worked.
• C) encourages firms to expand output by employing more low-productivity workers.
• D) encourages workers to unionize and, thereby, fight for higher wages.

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Definitions:

Expressly Excludes

A contractual term used to specify that certain conditions or provisions are deliberately not covered within an agreement.

Vicarious Liability

Legal responsibility taken by one party for the actions of another, typically in an employer-employee relationship.

Independent Contractors

Individuals or entities hired to perform specific tasks or services for another entity under a contract, but who retain control over how those services are executed.

Constructive Notice

A legal concept where a person is deemed to have legal notice of a fact, even if they were not directly informed, often through public records.