Which of the following statements is false about capital in an industry?
A)An industry experiencing economic profits gains capital.
B)Increased government taxation of an industry prevents some capital movement.
C)The movement of capital occurs in the short run and the long run.
D)Market forces cause capital to move where it is most highly valued.
E)The movement of capital is determined by how profitable industries are.

Question

Quizplus · Accepted Answer

The movement of capital typically occurs in the long run rather than the short run, as it takes time for resources to be reallocated based on profitability and market conditions.

Which of the Following Statements Is False About Capital in an Industry