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Study Island - The goods will assist in creating more capital.

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Q: What is the desired outcome of investing in capital goods?
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How do capital goods affect the GDP?

Investing in capital goods can increase productivity and / or workforce. These can affect the Gross Domestic Product if quality or number of products increase consequently.


The present choice between investing in capital goods and producing consumer goods now affects the ability of an economy to produce in the future. Explain?

AnswerConsumer goods are only available for present use and will not produce wealth. Capital goods, though not providing an immediate benefit, will produce wealth for future use (for more consumer goods and/or more capital goods).


The present choice between investing in capital goods and producing consumer goods now affects the ability of an economy to produce in the future. Explain.?

AnswerConsumer goods are only available for present use and will not produce wealth. Capital goods, though not providing an immediate benefit, will produce wealth for future use (for more consumer goods and/or more capital goods).


What is desired capital stock?

Desired capital stock is the level of capital stock that a firm needs to maximize its profits. It is obtained when the equation MPK = uc is balanced, where MPK is the marginal producitivity of capital and uc is the user cost. UC is obtained by rpk + dpk, where r is the expected real interest rate, d is the rate at which capital depreciates, and pk is the real price of capital goods.


What is commerce?

Caring goods from one place to another by investing capital in motive to earn profit. This is called commerce

Related questions

What incentive do companies have in investing in their capital goods or in new technologies?

The goods will assist in creating more capital.


How do capital goods affect the GDP?

Investing in capital goods can increase productivity and / or workforce. These can affect the Gross Domestic Product if quality or number of products increase consequently.


The present choice between investing in capital goods and producing consumer goods now affects the ability of an economy to produce in the future. Explain?

AnswerConsumer goods are only available for present use and will not produce wealth. Capital goods, though not providing an immediate benefit, will produce wealth for future use (for more consumer goods and/or more capital goods).


The present choice between investing in capital goods and producing consumer goods now affects the ability of an economy to produce in the future. Explain.?

AnswerConsumer goods are only available for present use and will not produce wealth. Capital goods, though not providing an immediate benefit, will produce wealth for future use (for more consumer goods and/or more capital goods).


What is desired capital stock?

Desired capital stock is the level of capital stock that a firm needs to maximize its profits. It is obtained when the equation MPK = uc is balanced, where MPK is the marginal producitivity of capital and uc is the user cost. UC is obtained by rpk + dpk, where r is the expected real interest rate, d is the rate at which capital depreciates, and pk is the real price of capital goods.


What is commerce?

Caring goods from one place to another by investing capital in motive to earn profit. This is called commerce


What is the difference between capital income and revenue income?

Revenue Income:which is earned or generated by sales of goods or services.Capital Income:Cash or goods used to generate income by investing in business or other property.Example:Investment in shares and gain on sale of asset.


Is computer is capital goods?

YES Computer is capital goods


Supply side economics of Ronald Reagan?

the supply of goods and service's would increase


What is the meaning of income goods?

income goods means goods that were not used by producers. And outcome goods called produced goods


This is equipment and factories used in the production of goods and services?

capital goods or capital


Which of the following statements is TRUE about capital goods?

Capital goods are bigger and more expensive than consumer goods.