An Increase in the Capital Stock

question 79

Multiple Choice

An increase in the capital stock

• A) can increase output, even if it is not accompanied by an increase in the labor force.
• B) provides valuable services directly, but not indirectly.
• C) can increase output, but only if it is accompanied by an increase in the labor force.
• D) cannot increase output, even if it is accompanied by an increase in the labor force.

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Definitions:

Interest Rate

The percentage of a loan that is charged as interest to the borrower, usually presented as an annual percentage of the remaining loan amount.

Antique

An object, piece of furniture, or artwork that has high value because of its considerable age and quality.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from experiencing or doing something desirable.

Insulation Job

The installation of insulating materials in buildings or structures to reduce the transfer of heat and enhance energy efficiency.