A. be able to produce top-quality goods and services.
B. Continually look to expand and invest.
C. Be able to produce more goods and services needed and wanted by society.
D. Spend more to meet the needs of its citizens.
Answer:
C. Be able to produce more goods and services needed and wanted by society.
If a specific economy has extra capital resources available, it means that it has surplus resources beyond what is needed to maintain its current level of production. This surplus can be used to increase the economy’s output of goods and services, which in turn can benefit society by providing more goods and services that are needed and wanted. This can lead to increased employment, higher living standards, and greater economic growth. However, how the surplus resources are used will depend on various factors, such as government policies, market conditions, and the preferences of consumers and investors.
FAQ:
When a specific economy has extra capital resources available?
When a specific economy has extra capital resources available, it means that there is a surplus of resources beyond what is required to maintain the current level of production. Capital resources refer to the assets that are used to produce goods and services, such as machinery, equipment, infrastructure, and human capital. This surplus can be used to invest in new projects, expand existing ones, or to increase the production of goods and services. The availability of extra capital resources can lead to increased economic growth and higher living standards for the population, as it allows for more efficient use of resources and increased productivity. However, how the surplus resources are used will depend on various factors, such as government policies, market conditions, and the preferences of consumers and investors.
What do capital resources increase?
Capital resources can increase the productive capacity of an economy. These resources refer to the physical and human assets that are used to produce goods and services. Physical capital resources include machinery, equipment, buildings, and infrastructure, while human capital resources refer to the skills, knowledge, and experience of workers.
By increasing the availability and efficiency of capital resources, an economy can increase its capacity to produce goods and services. This can lead to higher levels of output, increased employment, and higher living standards for the population. Additionally, investing in capital resources can lead to technological advancements and innovation, which can further enhance productivity and competitiveness in the long run.
However, it is important to note that the benefits of capital resources depend on how they are used and allocated. Investment in the wrong areas or in inefficient projects can lead to waste and inefficiency, whereas investment in the right areas can lead to growth and development. Therefore, effective allocation of capital resources is crucial for maximizing the benefits of these resources.
What is the economic resource of capital?
In economics, capital is one of the four main factors of production, along with land, labor, and entrepreneurship. Capital refers to the physical and financial assets that are used to produce goods and services. These assets include machinery, equipment, buildings, infrastructure, and financial resources such as stocks and bonds.
The economic resource of capital can be broadly classified into two categories: physical capital and financial capital. Physical capital refers to the tangible assets that are used to produce goods and services, such as machinery, equipment, and buildings. These assets are typically long-lasting and are used repeatedly in the production process.
Financial capital, on the other hand, refers to the money that is used to invest in physical capital or other assets, such as stocks, bonds, and other financial instruments. Financial capital provides a means of financing investment in physical capital and can help businesses and individuals to access funds for investment.
Overall, capital is an important economic resource as it enables businesses and individuals to invest in the production of goods and services, which in turn contributes to economic growth and development.
