📚 Learning Guide
Economic Growth and Resource Allocation
easy

Investment in capital goods is to economic growth as ____ is to consumer satisfaction.

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose 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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