Question

If a specific economy has extra capital resources available, it will:

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) have additional labor available to focus on production.

Answer 1

Extra capital resources in an economy enable the production of more goods and services, leading to economic growth. This is achieved by an outward shift in the production possibilities frontier and investments in human capital.

Step-by-step explanation:

When a specific economy has extra capital resources available, it implies that there is an increased capacity to utilize these resources. One outcome can be that the economy will be able to produce more goods and services needed and wanted by society. This growth in resources, including capital and labor, allows the production possibilities frontier to shift outward, enabling the society to afford more of all goods. In addition, investments in human capital can further ensure that the workforce is more skilled and efficient, contributing to overall economic growth and productivity.