Which of the following will NOT contribute to increasing the stock of capital of a nation?

Question

Quizplus · Accepted Answer

A lack of enforcement of private property rights will discourage investments and capital accumulation since individuals and firms will not be confident that their property or assets will be protected. Therefore, this will not contribute to increasing the stock of capital of a nation.

Choices B, C, and D will contribute to increasing the stock of capital of a nation. B) an increase in savings will allow individuals and firms to invest in productive assets, thereby contributing to the capital accumulation of the nation. C) a reduction in taxes on capital gains and stock dividends will encourage individuals and firms to invest their money in stocks and other financial assets, which, in turn, will contribute to capital accumulation. D) subsidization of higher education will result in a more productive workforce, which will lead to more innovations, enhanced productivity, and an increase in the stock of human capital.

Which of the Following Will NOT Contribute to Increasing the Stock