ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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New machinery
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Technology
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Factories
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None of these
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Detailed explanation-1: -A business does not see an immediate increase in revenue when it makes investments in capital goods. An increase in capital investment allows for more research and development in the capital structure.
Detailed explanation-2: -Economies build up their capital stocks by devoting some of their gross domestic product (GDP) to new capital goods-that is, investment.
Detailed explanation-3: -The four factors that drive economic growth are natural resources, labor, capital equipment, and entrepreneurship.
Detailed explanation-4: -To accumulate additional capital, a country needs to generate savings and investments from household savings or based on government policy. Countries with a high rate of household savings can accumulate funds to produce capital goods faster, and a government that runs a surplus can invest the surplus in capital goods.