If the United States decides to allocate more resources to capital goods and less to consumer goods, the United States will obtain a greater degree of:
A) economic growth.
B) full employment.
C) price stability.
D) technical efficiency.

Question

Quizplus · Accepted Answer

Allocating more resources to capital goods allows for increased investment in production capabilities, leading to higher productivity and potential economic growth in the long run. Consumer goods, on the other hand, are used for immediate satisfaction and do not contribute to long-term economic growth. Therefore, by prioritizing capital goods, the United States will obtain a greater degree of economic growth.

If the United States Decides to Allocate More Resources to Capital