ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Germany’s workforce has valuable human capital.
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Germany’s businesses have valuable capital goods.
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Germany has a low gross domestic product.
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Germany has a low standard of living.
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Detailed explanation-1: -Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people. The level of economic growth driven by consumer spending and business investment determines the amount of skilled labor needed.
Detailed explanation-2: -Germany has a mixed economy. It allows a free market economy in consumer goods and business services. But the government imposes regulations even in those areas to protect its citizens. Germany has a command economy in defense since everyone receives the benefit, while those with higher incomes pay more in taxes.
Detailed explanation-3: -Additional or improved capital goods is intended to increase labor productivity by making companies more productive and efficient. Newer equipment or factories leads to more products being produced, and at a faster rate.