Question

The Prime Minister is explaining a plan for improving the Australian economy. In the speech, the Prime Minister says: "Our workers must be prepared for the high-tech jobs of the 21st century. My plan will give incentives to companies who invest in new computers and wireless communications systems." The Prime Minister's plan is based on the conclusion that:

Answer 1

An investment in capital goods will increase the country’s Gross Domestic Product.

Step-by-step explanation:

Capital investment is an economic term, that describes the company acquisition of capital goods, such as buildings, machinery, computers, equipment, vehices, and tools, which are tangible assets.

Hence, in this case, since the Prime Minister's plan is to give incentives to companies who invest in new computers and wireless communications systems."

Therefore, the Prime Minister's plan is based on the conclusion that an investment in capital goods will increase the country’s Gross Domestic Product.