Asked by Desiree Hunter on May 07, 2024
Verified
An increase in the production of capital goods and a reduction in the production of consumer goods would most likely lead to a faster rate of future economic growth.
Capital Goods
Goods that are used in producing other goods, rather than being bought by consumers directly, such as machinery, tools, and buildings used in production.
Economic Growth
An increase in a nation's production of goods and services, measured by its gross domestic product (GDP) over time.
Consumer Goods
Items produced for personal consumption by individuals and households.
- Acknowledge the importance and role of productivity in determining the standard of living within a country.
- Comprehend how research and development influence the quality and quantity of labor and capital goods.
Verified Answer
SD
Shawna DietrickMay 13, 2024
Final Answer :
True
Explanation :
An increase in the production of capital goods means that there will be more investment in machinery, equipment, and infrastructure. This can lead to an increase in productivity and efficiency, which can ultimately result in higher economic growth in the long run. However, a reduction in the production of consumer goods may lead to a short-term decrease in consumer spending, which could negatively affect the economy in the short term.
Learning Objectives
- Acknowledge the importance and role of productivity in determining the standard of living within a country.
- Comprehend how research and development influence the quality and quantity of labor and capital goods.