ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capital investment as percent of GDP The average value for Germany during that period was 23.52 percent with a minimum of 18.56 percent in 2009 and a maximum of 32.7 percent in 1970. The latest value from 2021 is 23.29 percent. For comparison, the world average in 2021 based on 153 countries is 24.18 percent.

Detailed explanation-2: -Capital investment occurs when businesses purchase capital goods, which are tangible assets such as buildings, machinery, equipment, vehicles, and tools. These tangible assets are then used to produce goods or services. Capital investment is a means for a company to further its business objectives.

Detailed explanation-3: -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-4: -Which statement best describes the relationship between a country’s investment in capital goods and its gross domestic product (GDP)? Investments in capital goods typically lead to a decrease in GDP.