Question

The Prime Minister is explaining a plan for improving the British economy. What is the conclusion of the Prime Minister's plan?

a) An investment in human capital will increase the country's gross domestic product (GDP).
b) Adjusting the exchange rate will increase the profit that Great Britain makes in international trade.
c) An investment in capital goods will increase the country's gross domestic product (GDP).
d) An embargo on technology from other countries will help the British economy.

Answer 1

The Prime Minister's plan likely concludes that investments in human capital or physical capital and technological advancements will lead to increased productivity and GDP in the British economy.

Step-by-step explanation:

When the Prime Minister is explaining a plan for improving the British economy, the goal is typically to outline steps that will lead to economic growth and increased gross domestic product (GDP). Since increases in both human capital and physical capital can lead to greater productivity, and thus, a higher GDP, both investments are essential for economic development according to economic principles. Advancements in technology also significantly contribute to this growth by improving efficiency and productivity.

Considering these economic concepts, the conclusion that aligns with the principles of economic growth would be that investments in human capital, such as through education and skill development, or in physical capital, such as machinery and equipment, will bolster the economy's productivity, thereby increasing the country's GDP.