The nation's supply of productive resources increases if
A)investment is greater than depreciation.
B)investment equals depreciation.
C)investment is less than depreciation.
D)Both answers A and B can be correct.
E)None of the above answers is correct because the relationship between investment and depreciation has no bearing on the amount of the nation's productive resources.

Question

Quizplus · Accepted Answer

Productive resources refer to the resources that are used to produce goods and services, such as capital equipment and human labor. Investment refers to the addition of new capital equipment or the improvement of existing equipment, while depreciation refers to the decrease in value of existing capital equipment over time. Therefore, if investment is greater than depreciation, it means that there is a net increase in the amount of capital equipment available for production, which leads to an increase in the nation's supply of productive resources.

The Nation's Supply of Productive Resources Increases If