Forgoing current consumption so that those resources can be used to produce new capital is called
A) absolute advantage.
B) comparative advantage.
C) investment.
D) scarcity.
E) saving.

Question

Quizplus · Accepted Answer

Forgoing current consumption in order to produce new capital is called investment. This is because the resources being saved and used for investment purposes are being used to generate future economic growth and returns. The other choices (A) absolute advantage, (B) comparative advantage, (D) scarcity, and (E) saving are not directly related to the concept of forgoing current consumption in order to invest in new capital.

Forgoing Current Consumption So That Those Resources Can Be Used