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C A foundation Economics Paper4 Part I Questions for practice


Q10) “A wise individual or a society likes to provide for its growth of productive capacity.” This requires that a part of its resources should be devoted to the production of ___.

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Correct

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Solution:
The answer is (b) Capital goods.

Investing in capital goods, such as machinery, equipment, and infrastructure, is essential for increasing a society's productive capacity.

By devoting resources to the production of capital goods, a society can improve its efficiency and productivity in the long run, which will ultimately lead to an increase in the production of consumer goods as well.

Therefore, a wise individual or society would prioritize the production of capital goods as a means of enhancing its growth of productive capacity.

Defense goods may also be important for a society's security, but they are not directly related to the growth of productive capacity.
Correct option is (b)