Question

Explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new
technology, and the health, education, and training of people.

Answer 1

Answer:

There is a direct relation of the productivity, economic growth, and future standards of living with the investment in factories, machinery, new  technology, and the health, education, and training of people.

Explanation:

1. Relation with the investment in factories, machinery, new  technology

If there is larger investment in factories, machinery and new technology (fixed assets investing) then there will be more production which will require more labour. With more production, there will be more consumption thereby. The profits of the enterprises will increase and hence more taxes will be paid to the government, labour income in the economy will rise and hence there will be more consumption thereby. More taxes to the government will imply more public spending by the government.

So, saying all of that productivity, economic growth, and future standards of living will be in a much better place with the increase in fixed assets investing and vice-versa.

     2. Relation with the investment in health, education, and training of people

With the increased investment in health, education and training, people would be able to work more and better. Thereby, implying higher incomes and productivity leading to more economic growth and ultimately better future standards of living.