At the core of understanding economic growth is the idea that to raise living standards over time, an economy must
A) produce and consume goods and services.
B) save and invest.
C) export and import.
D) employ resources and earn incomes.

Question

Quizplus · Accepted Answer

Saving and investing are essential for economic growth because they allow for the accumulation of resources that can be used to create new businesses, expand existing ones, and develop new technologies. As the economy grows, more goods and services are produced, leading to higher incomes and a higher standard of living. Without saving and investment, an economy would have limited resources to work with and would struggle to achieve sustained growth. Producing and consuming goods and services, exporting and importing, and employing resources and earning incomes are all important aspects of economic activity, but saving and investing are particularly crucial for long-term growth.

At the Core of Understanding Economic Growth Is the Idea