A nation's economic growth is more rapid when

Question

Quizplus · Accepted Answer

Economic growth is fueled by efficient allocation of resources, which means that capital resources must be devoted to their most efficient use. When resources are used efficiently, productivity increases, leading to economic growth. The other options - government ownership of capital resources, barriers to establishing legal ownership, and free availability of scarce resources - do not promote efficient allocation of resources and may actually hinder economic growth.

A Nation's Economic Growth Is More Rapid When