A consulting firm is advising its government clients that their economies really do not need to sacrifice consumption goods today in order to grow. Which of the following options would make it possible for clients to experience growth without making sacrifices?

Question

Quizplus · Accepted Answer

Receiving gifts of capital or technological innovations can increase the productive capacity of an economy without sacrificing current consumption. This can lead to long-term economic growth without the need for short-term sacrifices. Option A is incorrect as reducing the quantity of capital goods produced would limit the economy's ability to produce goods and services in the future. Option C is incorrect as reducing consumption today may lead to short-term growth but would limit consumption in the future. Option D is incorrect as reducing food production could lead to food shortages and negative consequences for the economy.

A Consulting Firm Is Advising Its Government Clients That Their