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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Definitions:

Surplus

The amount of a product or service exceeding the demand for it, typically resulting in lower prices.

World Market

The global marketplace where goods, services, and financial securities are traded across countries.

College Costs

The total expenses associated with attending a college or university, which include tuition, room and board, books, and other fees.

Trend

A long-term direction or pattern in data, often observed in economic variables, stock market prices, or consumer behavior over time.