Hypotheses to Explain the Positive Correlation Between Factor Accumulation and Production

question 51

Multiple Choice

Hypotheses to explain the positive correlation between factor accumulation and production efficiency include all of the following except:

• A) the quality of a nation's institutions influences both factor accumulation and production efficiency.
• B) capital accumulation causes greater production efficiency.
• C) efficient economies make capital accumulation unnecessary.
• D) an efficient economy encourages capital (including human capital)accumulation.

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