Asked by
Puneet Sparsh
on Nov 30, 2024
Verified
If a nation starts out with very little capital
A) it is doomed to eternal poverty because it will not be able to divert productive resources from producing consumer goods to producing capital goods.
B) it can quite easily divert some resources from producing consumer goods to producing capital goods.
C) if it is lucky enough to possess a valuable commodity that the industrial world wants such as oil,it can sell its oil in exchange for plant and equipment and thus industrialize.
D) None of the choices are true.
Capital Goods
Physical assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.
Consumer Goods
Products produced for purchase by individuals and households for personal use, such as clothing, food, and electronics.
Industrialize
The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.
- Familiarize oneself with the core ideas of supply, demand, and the influence of pricing mechanisms on distributing resources and goods.
Verified Answer
MM
Learning Objectives
- Familiarize oneself with the core ideas of supply, demand, and the influence of pricing mechanisms on distributing resources and goods.