Which of the Following Would Be Most Likely to Encourage

question 68

Multiple Choice

Which of the following would be most likely to encourage capital formation in a less-developed country?

• A)the expectation of sustained high inflation
• B)the expectation that property rights will be highly secure in the years ahead
• C)the imposition of high tariffs and other restraints limiting imports
• D)higher personal and corporate tax rates

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Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while keeping other inputs constant.

Fourth Worker

An individual representing an additional unit of labor in the context of discussing labor inputs and productivity, often in economic analysis.

Average Product

refers to the output per unit of input, calculated by dividing the total product by the quantity of input.

Workers

Individuals engaged in any form of employment to earn a living through their labor or professional skills.