The material wealth of society is determined by the economy's ________, which is a function of the economy's ________.

Question

Quizplus · Accepted Answer

The material wealth of society is determined by its productive capacity, meaning the ability to produce goods and services. This productive capacity is a function of real assets, such as natural resources, physical infrastructure, and human capital. Financial assets, such as stocks and bonds, do not directly contribute to the economy's productive capacity and therefore do not determine the material wealth of society. Investment bankers may play a role in allocating financial assets, but they do not determine the productive capacity of the economy.

The Material Wealth of Society Is Determined by the Economy's