Answer: The nation must have a mechanism capable of attracting savings and channeling them into wealth-creating projects. Option C.
Explanation: With higher savings in an economy, a country can be involved in financing higher levels of investment that will boost productivity over the longer term.
Starving the economy of savings and investments can lead to future bottlenecks and shortages.
The Harrod-Domar model of economic growth suggests that, the level of savings is a key factor in determining economic growth rates.
What this basically means is that the level of investment in an economy is limited to the level of savings in that economy.
Therefore a country must strive to attract higher savings in order to create projects that will, in return, create wealth for the country.
Answer:
1. spare parts - Repair, and other activities
2. work-in-process - Production maintenance
3. indirect materials - Customer Service
Explanation:
The manufacturing cost which is directly affected by the units produced is direct cost and the manufacturing cost which is not affected by the units produced is indirect cost.
Material used for Customer service is indirect material
Work in process is part of production maintenance
Spare parts are required to complete repair activities.
