Question

Which statement best summarizes the relationship between investments and productivity?

A. Companies use investments to pay for services that improve their productivity.
B. Companies use investments to avoid the need to increase overall productivity.
C. Companies must choose between high levels of productivity and large investments.
D. Companies with high levels of productivity are the most likely to need investment.

Answer 1

Answer:A. Companies use investments to pay for services that improve their productivity.

Explanation:

The best description of the relationship between investments and productivity is that A. Companies use investments to pay for services that improve their productivity.

Investments made by companies include:

Increasing the production capacity factories

Buying more efficient machinery and equipment

Hiring more people

All of the above are needed to improve productivity which means that if a company wants to improve its productivity, it will need to make investments that enable it to do so.

In conclusion, investments are needed to increase productivity.