Which of the following will not contribute to increasing the stock of physical or human capital of a nation?
A)an increase in savings
B)a reduction in taxes on capital gains and stock dividends
C)a lack of enforcement of private property rights
D)the subsidization of higher education

Question

Which of the following will not contribute to increasing the stock of physical or human capital of a nation?
A)​an increase in savings
B)​a reduction in taxes on capital gains and stock dividends
C)​a lack of enforcement of private property rights
D)​the subsidization of higher education

Quizplus · Accepted Answer

Lack of enforcement of private property rights decreases the incentives for investment in physical and human capital as investors are not assured of the security of their investments. Therefore, it will not contribute to increasing the stock of physical or human capital. A, B, and D, on the other hand, all contribute to increasing the stock of physical or human capital by providing incentives for saving, investing, and education.

Which of the Following Will Not Contribute to Increasing the Stock