Which of the Following Statements Best Describes the Characteristics of Accumulating

question 39

Multiple Choice

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

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

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Definitions:

Dependent Variable

In an experiment or statistical model, the variable that is expected to change as a result of manipulations in the independent variable.

Independent Variable

A factor in a study or simulation that is deliberately altered to see its impact on a variable that depends on it.

Total Sum Of Squares

A measure in statistics that quantifies the total variation of a dataset.

Dependent Variable

The variable in an experiment that is expected to change in response to changes in the independent variable.