ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The GDP of a country goes down when companies make more money
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Companies that invest in capital goods are able to provide a better place for their workers to work
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Highly trained workers help the company be more profitable by finding ways to help the company work better.
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When a company invests in capital, it can produce more goods at a better price and increase the profit that it makes.
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Detailed explanation-1: -Capital formation essentially leads to more money swirling around the economy. The accumulation of capital goods translates to investment and the production of more goods and services, which should boost the income of the population and stimulate demand.
Detailed explanation-2: -when countries invest in capital goods, they are providing better facilities, resources, and/or materials for the people who perform the labor, which creates a more productive workforce leading to greater economic growth (higher GDP).
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.
Detailed explanation-4: -Investment in physical capital relates to a higher GDP. More advanced factories, machinery, and technology creates a more productive workforce, which leads to greater economic growth [higher GDP].
Detailed explanation-5: -Business investment can affect the economy’s short-term and long-term growth. In the short term, an increase in business investment directly increases the current level of gross domestic product (GDP), because physical capital is itself produced and sold.