Colonial America Had Little Industry and So Had Mostly Raw

question 37

Essay

Colonial America had little industry and so had mostly raw materials to export. At the same time, there were many opportunities to purchase capital goods and earn a high rate of return because there was little existing capital so that the marginal product of capital was relatively high. What does this suggest about net exports and net capital outflow in colonial America?

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Definitions:

Training

The process of enhancing one's skills, knowledge, and competencies through practice and instruction, aimed at improving performance in a specific area.

Interpersonal

Relating to or involving relations between people, typically emphasizing direct face-to-face interactions.

Downward Social Comparison

The process of comparing oneself to others who are perceived as worse off or inferior in order to feel better about one's own situation.

Upward Social Comparison

A process in which individuals compare themselves to others who are perceived as better or superior in some way, often affecting self-esteem and motivation.