A key factor that leads to economic growth is
A) avoiding the opportunity cost of investment.
B) human capital accumulation.
C) increasing current consumption.
D) Both answers A and B are correct.

Question

Quizplus · Accepted Answer

Human capital accumulation, or investment in education and training, is crucial for sustained economic growth as it leads to increased productivity and innovation. Avoiding opportunity cost refers to making efficient choices in allocating resources, but this alone does not necessarily lead to economic growth. Increasing current consumption may lead to short-term economic growth, but it is not sustainable in the long run. Therefore, answer choice B is the best choice as it correctly identifies a key factor for achieving economic growth.

A Key Factor That Leads to Economic Growth Is