Respond to the following question: “Producing capital goods or advanced technology takes time, so how can that be a more efficient form of production of consumer goods?”
Please provide the best answer for the statement.
The production of capital goods or advanced technology does require time. These capital goods, however, can then be used to increase the production of consumer goods. This roundabout method of production is more efficient over time, but it does not come without a cost. As shown by the production possibilities curve, resources used to make capital goods must be diverted from the production of consumer goods today to produce capital goods that will then be used to increase the consumer goods of tomorrow.
You might also like to view...
The essence of good management is to determine whether a new practice adds
A) revenue. B) market share. C) customer satisfaction. D) value. E) costs.
The real risk-free interest rate is equal to:
a. The difference between the nominal interest rate and expected inflation. b. The tradeoff that society must make between consuming now and consuming later. c. The rate at which the International Monetary Fund borrows from the World Bank. d. The rate at which banks lend to their best customers (i.e., lowest credit risk). e. None of the above is correct.
For a perfectly competitive market, long-run equilibrium is characterized by all of the following but which one?
A. P = maximum ATC. B. P = minimum ATC. C. P = MC. D. P = MR.
Which of the following statements is true?
A. A tariff is a physical limit on the quantity of a good allowed to enter a country. B. An embargo is a tax on an imported good. C. A quota is a law that bars trade with another country. D. When a nation exports more than it imports it is running a balance of trade surplus.