CHILD DEVELOPMENT PEDAGOGY

Detailed explanation-1: -Capital accumulation primarily focuses on the growth of existing wealth through the investment of earned profits and savings. This investment is focused in a variety of ways throughout the economy. One method of growing capital is through the purchase of tangible goods that drive production.

Detailed explanation-2: -Capital accumulation contributes to economic growth by making each labor more productive. With capital accumulation, the stock of physical capital increases over time.

Detailed explanation-3: -investment position maintains, the accumulation of capital is the most effective way to create the other conditions required for economic growth; these requisites are created concurrently with and primarily by a high rate of capital formation.

Detailed explanation-4: -Capital Accumulation and Endogenous Growth Models Endogenous growth models hold that capital accumulation can increase the long run trend rate of economic growth. However, to permit capital accumulation it is necessary to increase the savings ratios.

Detailed explanation-5: -Key Takeaways Capital goods are one of the four leading economic factors. An increase in orders and shipments of capital goods is a sign that businesses expect more demand and that the economy will grow.