Capital accumulation in a market system results from:
A) Increased purchases of consumers or households
B) The "invisible hand" that guides the market
C) Dollar votes by entrepreneurs and business owners
D) Consumer sovereignty that prevails in the market

Question

Quizplus · Accepted Answer

Capital accumulation in a market system results from dollar votes by entrepreneurs and business owners. These individuals decide how to allocate their resources based on their perception of market demand and potential profit. They invest in expanding their businesses by purchasing more machinery, buildings, and hiring additional employees, resulting in capital accumulation. Increased purchases of consumers or households are a result of capital accumulation, not the cause of it. The "invisible hand" that guides the market and consumer sovereignty that prevails in the market are guiding principles but not direct causes of capital accumulation.

Capital Accumulation in a Market System Results From