Increased investment alone will guarantee economic growth. A. This is a false statement, because an economy must rely on capital injections from abroad. B. This is a true statement, because money is the only resource needed for growth. C. This is a true statement, because growth occurs only with savings. D. This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.

Question

Business

Sammy Pace

9 November, 14:46

Increased investment alone will guarantee economic growth. A. This is a false statement, because an economy must rely on capital injections from abroad. B. This is a true statement, because money is the only resource needed for growth. C. This is a true statement, because growth occurs only with savings. D. This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.

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Answers (1)

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Annabelle Potter · Answer 1

D

Explanation:

This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.

Increased investment in physical capital, such as factories, machinery, and roads, can yield increased productivity. Physical labour is not as efficient as Good factories and machinery.

The quality of human capital, that is the number and quality of skilled workers can also bring about Economic growth.

Technological improvements can cause an increase in productivity thereby causing increase in Economic growth.