Asked by Hunter Stankiewicz on Jul 29, 2024
Verified
Which statement is false?
A) Investment in plant and equipment fell over 70 percent between 1929 and 1933.
B) Our economy would grow faster if we shifted resources from capital goods production into consumer goods production.
C) Because Americans save so little,its rate of capital formation has been lagging.
D) None is false.
Capital Goods
Long-lasting goods used in the production of other goods or services, such as machinery, tools, and buildings.
Consumer Goods
Finished products consumed by individuals or households to satisfy their immediate wants or needs, such as food, clothing, and electronics.
- Recognize economic patterns throughout history and their influence on investing decisions.
- Discriminate between factual and fallacious statements related to economic notions and company architectures.
Verified Answer
ZK
Zybrea KnightAug 01, 2024
Final Answer :
B
Explanation :
Shifting resources from capital goods production into consumer goods production would lead to a decrease in capital formation and could potentially slow economic growth in the long term. This is contrary to the statement in option B which suggests that it would lead to faster economic growth.
Learning Objectives
- Recognize economic patterns throughout history and their influence on investing decisions.
- Discriminate between factual and fallacious statements related to economic notions and company architectures.