0
Investment in both physical and human capital tends to enhance economic growth because it generally?
Wiki User
∙ 10y ago
a
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Why investment is important in an economy?
Allow businesses to raise capital to sustain and grow. The more businesses there are, the more competition, the more competition, the more innovation and price efficiency (as companies compete for customers' money).
Tourism is generally a service rather than a physical product?
Tourism is generally considered a service. Tourism is not a physical product because you cannot take the environment home with you.
What is Crowding In in economics?
Definition: finance governmental deficits' spur to investment: the theory that a country's budget deficit in periods of economic depression can lead to higher private investment because it brings higher government spending and monetary growth
Which was not a warning sign of tough economic times ahead before the Great Depression?
Sock prices had increased because people purchased on credit but this was not a reflection of a real investment. This was not a warning sign of tough economic times ahead because people seemed to have been doing better financially before the Great Depression.
Advantages or importance of multiplier effect?
Concept of multiplier is important form the theoretical as well as practical point of view. For this reason, the importance of multiplier in business and economic sector. The importance of the multiplier can be explained as follows: 1. Importance in investment Multiplier theory has taken investment as the important factor of the economy. The proportionate increase in the level of income and employment in the economy depends up on the multiplier. This clarifies that increase in income and employment is on the basis of increase in investment. 2. Analysis of trade cycle It is easier to analyses trade cycle on the basis of multiplier. Multiplier helps in estimating the increase in income as a result of increase in investment. So, multiplier will be of great importance in formulating progressive policies to bring the effects in the economy to right speed. 3. Formulation of economic policy The main objective of every economic policy is to create the situation of full employment in the economic. Therefore policy makers will formulate their country's economic policy using the multiplier. This will help in creating the situation of full employment. 4. Public investment Public investment is of great importance specially in the situation of depression and unemployment, because this does not stress much on profits. Multiplier indicates the importance of public investment in increasing the level of employment. 5. Equality between saving and investment The equality between saving and investment can be brought about with the help of multiplier. Increase in investment increases the income. Increase in income will bring about equality in saving and investment.
Is investment an abstract noun?
No. 'Investment' is a common noun. This is because investment is the physical action of investing; it does not exist only in the mind.
Why investment is important in an economy?
Allow businesses to raise capital to sustain and grow. The more businesses there are, the more competition, the more competition, the more innovation and price efficiency (as companies compete for customers' money).
How are the physical regions and economic regions and cultural regions alike?
Physical, economic, and cultural regions are alike because they are located within a specific territory.
Are regions only found where physical and economic characteristics are strongly related?
This statement is false, because the standards for a "region" go beyond physical and economic characteristics. There are other things that a region can qualify for.
What effect might increased savings have on economic growth?
Increased savings affects economic growth primary by changing the future level of savings with respect to investment. Since savings is matched to investment and investment is used to replace and purchase capital, future investment will determine the respective level of capital development. Economic growth, being a function of the factors of production, including capital, will be changed by increased savings by having a higher level of future capital. Moreover, increasing savings can increase or decrease future economic growth, depending on the difference between current investment and required investment. When current investment falls below required investment, future economic growth increases due to a savings increase and vice-versa. Decreasing growth is possible because factors of production have diminishing returns to scale, which means that increasing levels of capital have lower returns to productivity than previous units.
Tourism is generally a service rather than a physical product?
Tourism is generally considered a service. Tourism is not a physical product because you cannot take the environment home with you.
Why are there several different economic goals?
There are several economic goals because no single factor will improve the economy. Job creation and capital investment often are interrelated, but it requires different actions to achieve gains in both of them.
What is Crowding In in economics?
Definition: finance governmental deficits' spur to investment: the theory that a country's budget deficit in periods of economic depression can lead to higher private investment because it brings higher government spending and monetary growth
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low?
1. What if firms expected future returns to be very high?
Is having your money invested in a fixed rate annuity with TransAmerica Life Insurance Company a risky investment during these difficult economic times Is there some sort of security guarantee for these types of investments along the lines of the FDIC.?
It's hard to say if it's a risky investment because it depends upon your risk threshold (that is your level of comfort of with relation to risk). Annuities are generally are safer investment than stocks (please note I said generally because there is no guarantee). However, according to the Transamerica website some of the annuities guarantee income for life and is not dependent upon the stock market. Generally, investments don't have security guarantees like the FDIC. You always assume some level of risk by investing. so amd I better off to take it out and can I put it into a savings acct
Why is planned investment called an injection?
Planned investment is called an injection because it refers to new spending or investment that is added to the circular flow of income and expenditure in an economy. It injects additional income and spending into the economy, stimulating economic activity and potentially increasing aggregate demand. In contrast, unplanned changes in inventory levels are called leakages because they remove income and spending from the circular flow.
Do investment consultants charge by the hour or commission, generally?
Investment consultants are normally going to charge by the hour because they don't know your paticular situation. You could get lucky if you look around and find one that has a flat rate though also.
