Which of the Following Is NOT a Contributing Factor into Why

question 44

Multiple Choice

Which of the following is NOT a contributing factor into why the HPAE were able to rapidly accumulate physical and human capital?

• A)A stable macroeconomic environment meant low inflation
• B)Loans from multilateral institutions such as the IMF,the World Bank,and regional development banks
• C)The demographic transition meant that the proportion of their population working was higher.
• D)A rapid rise in income made greater amounts of savings possible.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and economic agents have fully adjusted to any economic changes.

Perfect Competition

A market structure characterized by a large number of buyers and sellers, freely entering or exiting the market, selling identical products.

Average Total Cost

The total cost of production divided by the quantity produced, encompassing both fixed and variable costs.

Excess Capacity

The situation where a firm or economy can produce more goods or services than currently demanded, often leading to underutilization of resources.