Robinson Crusoe's decision to produce more capital goods and fewer consumer goods in a given period causes:

Question

Quizplus · Accepted Answer

By producing more capital goods and investing in the production process, Robinson Crusoe is able to increase productivity and efficiency in the long run. This will lead to an increase in economic growth in future periods, making option D the correct choice. Options A and B are incorrect because increasing capital goods actually increases the resources available and improves the ability to produce goods in the next period. Option C is also incorrect because increased investment in capital goods leads to higher economic growth in future periods.

Robinson Crusoe's Decision to Produce More Capital Goods and Fewer