Additional capital makes its best contribution to economic growth by
A)Replacing labor.
B)Enhancing labor productivity.
C)Allowing service industries to replace manufacturing industries as primary employers.
D)Giving savers more money to put into investment.

Question

Quizplus · Accepted Answer

Additional capital can enhance labor productivity by providing resources and technology that allow workers to produce more in less time, ultimately leading to increased economic growth. This can result in higher wages and profits, as well as improved standards of living for individuals and the broader population. The other options are either not directly related to the impact of additional capital on economic growth or may have negative consequences, such as displacement of labor or a shift away from productive industries.

Additional Capital Makes Its Best Contribution to Economic Growth by