Question

Which of the following statements is most accurate about capital accumulation in a market system?

A Capital accumulation is generally insufficient because consumers don't directly cast dollar votes for capital goods.

B Entrepreneurs and business owners cast dollar votes for capital goods based on the profitability of goods and services they sell to consumers.

C The invisible hand directs the production of consumer goods, but government planning is required to effectively allocate resources to capital goods.

D Capital good production is the primary driver of the demand for consumer goods.

Answer 1

OPTION B is the correct answer

Reason - Because in capital goods, Investment is decided as to which goods and services are to produced and offered on thr basis of the profitability. Hence entrepreneurs and busniness owners cast dollar votes on the basis of profitabilty of goods and services so as to sell it to the consumers.

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