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) current consumption and future consumption.
C) economic growth and technological change.
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 reflects a tradeoff between consuming today and consuming in the future. By producing capital goods, a society is investing in its future production capabilities, which can lead to increased consumption possibilities in the future. However, this comes at a cost of reduced current consumption, as resources that could be used for current consumption are instead used to produce capital goods. Therefore, the choice between current consumption and future consumption is the most accurate reflection of the tradeoff.

The Tradeoff Between Current Consumption and the Production of Capital