Q259
Larger production of ___ goods would lead to higher production in future
A.
Consumer goods
B.
Capital goods
AnswerC.
Agricultural goods
D.
Public goods
Answer: Option B
Solution
Answer: Option B
Solution:
Larger production of Capital goods goods would lead to higher production in future. If investment in capital good increases ,in turn it further increases the production of consumer goods in the long run. So, if an economy is investing more in capital goods, it shows signs of growth in near future, an increase in GDP.