Suppose a Presidential Candidate Campaigns on the Need to Improve

question 223

Essay

Suppose a presidential candidate campaigns on the need to improve U.S. infrastructure, a term for capital goods like bridges, highways, and technology (much of it publicly owned). Which would lead to faster growth: government expenditure on capital goods or expenditure on consumption goods such as sports stadiums? Illustrate your answer, drawing appropriate production possibilities frontiers accompanied by an explanation.

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Definitions:

Offering Available

Offering available denotes the range of products or services that a business makes accessible to its customers.

Consumers

Individuals or groups who purchase goods and services for personal use.

Utility

The satisfaction or benefit a consumer derives from consuming a product or service.

Textile Industry

A sector engaged in the production of yarn, cloth, and the subsequent design or manufacture of clothing and their distribution.