If a country devotes its resources to acquiring more physical capital:

Question

Quizplus · Accepted Answer

Acquiring more physical capital requires investment, which means that the country faces the investment trade-off. This trade-off means that the country must choose between using its resources for current consumption or investing in capital goods. By investing in physical capital, the country may have more GDP per capita in the future, but it will have less current consumption. Therefore, all three options are true.

If a Country Devotes Its Resources to Acquiring More Physical