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A Significant Problem with Developing Nations Relative to Their Production

Question 88

Multiple Choice

A significant problem with developing nations relative to their production of capital goods and consumption goods is


A) capital and consumption goods do not play a vital role in the role of determining real GDP.
B) that producing fewer capital goods invests in the future and allows for future decreases in consumption goods,but sacrifices current consumption goods which may prove beneficial to citizens in the short run.
C) that producing more capital goods invests in the future and allows for future increases in consumption goods,but sacrifices current consumption goods which may prove detrimental to citizens in the short run.
D) it is not a real problem since developing nations are not our trading partners;only the united States plays a vital role in Canadian trade policy.

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