If a nation produces more consumer goods and less capital goods, then the nation will have:
A) More consumption now, but less consumption later
B) Less consumption now, but more consumption later
C) More consumption now, with no effect on consumption later
D) Less consumption later, with no effect on consumption now

Question

Quizplus · Accepted Answer

Producing more consumer goods and less capital goods means that there will be more goods available for immediate consumption, but less investment in long-term production capabilities. This will lead to decreased production and consumption possibilities in the future. Therefore, the nation will have more consumption now, but less consumption later.

If a Nation Produces More Consumer Goods and Less Capital