Introduction to Economics 1 Deneme Sınavı Sorusu #561264
Which of the following statements about ‘investment’ is false?
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It can be considered as the determinant of productivity level of a country. |
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It can be described as the increase in the general price level in the economy. |
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It can be accepted as a recipe for increasing economywide productivity levels. |
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It can be in the form of human capital (improving people’s productive skills). |
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It can be in the form of physical capital (machinery and equipment used in production). |
Investment can be considered as a factor what determines the productivity level of a country. It is actually a recipe to increase economywide productivity levels of a country. This can be achieved by investing in physical capital (all machinery and equipment used in production) and human capital (improvement of people’s productive skills through education and training). However, the increase in the general price level (or overall level of prices) in the economy within a given period of time is the description of inflation. The correct answer is B.
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