Question

Question 2: Understanding Capital
Which of the following BEST describes capital?
A. Natural resources such as water and minerals
B. Money earned from trade
C. Machines, tools, factories, and technology used to produce goods and services
D. Workers who provide labor
Question 3: Importance of Capital Investment
Why does investing in capital help an economy grow?
A.It increases population size
B. It lowers the demand for goods
C. It reduces the need for technology
D. It helps workers produce goods more efficiently
Question 4: Capital and Productivity
What is the BEST result of increased productivity caused by capital investment?
A. Higher unemployment
B. Fewer goods produced

Answer 1

Q2: C — Machines, tools, factories, and technology used to produce goods and services.

Q3: D — It helps workers produce goods more efficiently.

Q4: Neither A nor B. Increased productivity from capital investment typically leads to more goods produced (higher output), lower costs, and economic growth — not fewer goods or necessarily higher unemployment.