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

Question

Quizplus · Accepted Answer

Investing in physical capital (e.g. buildings, factories, tools) contributes to increasing productivity and economic growth, leading to higher GDP per capita in the future. However, this does involve a trade-off between current consumption and investment, as resources devoted to acquiring physical capital cannot be used for immediate consumption. It is also possible for over-investment in physical capital to lead to a decrease in overall GDP in the future if the additional capital is not utilized efficiently.

If a Country Devotes Its Resources to Acquiring More Physical