Identify the correct statement

Question

Quizplus · Accepted Answer

A is the correct statement as effective protection of property rights encourages individuals to invest in their assets, leading to greater economic growth through innovation and productivity gains. B is incorrect as higher investments in national defense may divert resources away from other productive sectors of the economy. C is also incorrect as the per-worker production function is typically positively sloped, indicating that as additional units of input (such as labor) are added, output per worker will increase. D is incorrect as improvements in and greater stocks of capital will shift the production possibilities curve outward, allowing for greater levels of production. E is incorrect as an increase in labor input does not necessarily increase output per capita if other factors such as technology and capital are not also sufficient to support and complement the additional labor input.

Identify the Correct Statement