Final answer:
An effective capital allocation process is vital to a healthy economy because it enhances productivity, fosters innovation, and creates efficient securities markets; it also benefits from supportive government policies.
Step-by-step explanation:
An effective process of capital allocation is crucial to a healthy economy for various reasons. It promotes productivity, as investments to upgrade factories can make workers more productive or even replace them through automation, thus boosting profits. Moreover, effective capital allocation encourages innovation by providing incentives to individuals and firms to seek out new technologies that can make work easier or improve products. Finally, it contributes to creating an efficient and liquid market for buying and selling securities, facilitating trades and investments.
Healthy economic growth is also supported by government actions such as building infrastructure and funding education, which can indirectly contribute to the productivity and profitability of businesses. The synergistic role of market-oriented economics and supportive government policies create an environment where human capital deepening, physical capital deepening, and technological gains can flourish.
Therefore, the answer to the student's question would be d) all of these results from an effective process, as productivity, innovation, and efficient markets are all outcomes of properly allocated capital resources within a market economy, sometimes augmented by government support.