Is Increased Capital Spending the Only Way for an Economy

question 238

Multiple Choice

Is increased capital spending the only way for an economy to expand its production possibilities frontier?

• A)No, an economy can also expand by invention and innovation.
• B)No, an economy can also grow by investment instead of capital spending.
• C)Yes, more capital is the only way to expand its production possibilities frontier.
• D)Yes, although more capital clearly has a high opportunity cost.
• E)Yes, because capital is the only constraining resource that limits growth.

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An individual's habitual way of explaining events, which can influence their motivation, mood, and reactions to situations.

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