A country can use its given resources to produce capital goods or consumer goods. This implies that

Question

Quizplus · Accepted Answer

The given statement suggests that a country has to choose between using its resources to produce capital goods, which will facilitate economic growth in the future, or consumer goods, which will increase the current standard of living. Thus, there is a tradeoff between the current and future standards of living.

A Country Can Use Its Given Resources to Produce Capital