As an economyʹs capital stock increases, the economy

Question

Quizplus · Accepted Answer

As the economy's capital stock increases, it is able to produce more output and becomes more productive, resulting in economic growth. Increased capital stock can lead to more job opportunities as well, reducing unemployment. However, it does not necessarily give the economy an absolute advantage in the production of capital goods and does not affect the decision to engage in international trade.

As an Economyʹs Capital Stock Increases, the Economy