Asked by Mauricio Davila on Jul 04, 2024
Verified
If a nation starts out with very little capital
A) it can increase its capital if it is able to divert productive resources from producing consumer goods to producing capital goods.
B) the process of diverting some resources from producing consumer goods to producing capital goods will most likely be quite painful.
C) if it is lucky enough to possess a valuable commodity that the industrial world wants,such as oil,it can sell its oil in exchange for plant and equipment and thus industrialize.
D) All of the choices are true.
Capital Goods
Long-lasting goods acquired by a business to produce goods or services, as opposed to being sold directly to consumers.
Productive Resources
Inputs used in the production of goods or services in order to make an economic profit. These include land, labor, capital, and entrepreneurship.
Consumer Goods
Products and services that are purchased or consumed by individuals or households for their direct satisfaction and needs.
- Achieve insight into the essential doctrines and theoretical approaches of economics, especially regarding market operations, competitive strategies, and the role of government intervention.
- Contrast the approaches to resource distribution and manufacturing adopted by diverse economic systems.
Verified Answer
RJ
Rinaldo JosephJul 10, 2024
Final Answer :
D
Explanation :
All of the choices are true. A nation with very little capital can increase its capital by diverting resources from producing consumer goods to producing capital goods, but this process may be painful. If the nation possesses a valuable commodity like oil, it can sell the commodity to the industrial world in exchange for plant and equipment, which can be used to industrialize the nation.
Learning Objectives
- Achieve insight into the essential doctrines and theoretical approaches of economics, especially regarding market operations, competitive strategies, and the role of government intervention.
- Contrast the approaches to resource distribution and manufacturing adopted by diverse economic systems.