Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Spending on luxury items
B
Saving for future needs
C
Allocating resources to essential services
D
Producing more consumer goods
Understanding the Answer
Let's break down why this is correct
Answer
Investment in capital goods helps create more products and services, which drives economic growth. Similarly, consumer satisfaction can be achieved through investment in quality goods and services that meet people's needs. For example, if a company invests in better technology to produce smartphones, it can create a more advanced product that customers will enjoy using. This investment not only helps the company grow by attracting more buyers but also makes consumers happier because they have better options. Just like capital goods support the economy, quality products enhance consumer satisfaction.
Detailed Explanation
Saving for future needs helps people buy what they want later. Other options are incorrect because Some think luxury spending makes them happy right away; Essential services are important, but they don't directly relate to personal satisfaction.
Key Concepts
Resource Allocation
Economic Growth
Consumer Satisfaction
Topic
Economic Growth and Resource Allocation
Difficulty
easy level question
Cognitive Level
understand
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