Which of the following statements is correct?

Question

Quizplus · Accepted Answer

It is important to consider the marginal benefit and cost of investment in capital goods because if the marginal cost of investment is higher than the marginal benefit, it may not be profitable for the economy. Therefore, the statement "It is desirable to invest in more capital goods for future economic growth only if the marginal benefit of the investment exceeds the marginal cost" is correct. The other options are incorrect because the marginal benefit of capital goods may not necessarily increase as more capital goods are produced (option B), producing capital goods may require sacrificing consumption goods in the present (option C), and the marginal productivity of capital may not necessarily increase as more capital goods are produced (option D).

Which of the Following Statements Is Correct