Asked by Alondra Gonzalez on Jul 22, 2024
Verified
Insufficient capital formation can limit a poor nation's economic growth.
Insufficient Capital Formation
A situation where the economy or an entity fails to invest adequately in capital goods, which can limit economic growth and productivity.
Economic Growth
An increase in the capacity of an economy to produce goods and services, compared from one period of time to another, typically measured by the gross domestic product (GDP).
- Describe the effect of accessible capital on workforce efficiency and the expansion of the economy.
Verified Answer
DR
Dianitza RodriguezJul 23, 2024
Final Answer :
True
Explanation :
Insufficient capital formation means there's not enough investment in physical assets like factories, machinery, and infrastructure, which are crucial for economic growth and development. Without adequate investment, a poor nation's ability to improve productivity, create jobs, and increase incomes is severely limited, hindering its overall economic growth.
Learning Objectives
- Describe the effect of accessible capital on workforce efficiency and the expansion of the economy.