The tradeoff between current consumption and the production of capital goods also reflects a tradeoff between
A) satisfying today the needs of the poor and the wants of the wealthy.
B) economic growth and technological change.
C) current consumption and future consumption.
D) the future production of capital goods and future consumption of goods.

Question

Quizplus · Accepted Answer

The tradeoff between current consumption and the production of capital goods ultimately impacts the amount of future consumption. By investing in capital goods instead of consuming current goods, the economy is able to generate more production and economic growth, which will allow for greater consumption in the future. Therefore, the tradeoff is between current consumption and future consumption.

The Tradeoff Between Current Consumption and the Production of Capital