Question

Which of the following are common terms for spending on infrastructure (such as highways), production facilities (such as factories), schools, attending college, or anything else that will increase future production possibilities?
a. Capital goods
b. Human capital
c. Investment
d. Consumption

Answer 1

Answer:

c

Explanation:

Investment can be described as purchasing an asset with the aim of generating more income or earning capital appreciation.

Here, investment is in capital goods and human capital

Capital goods comprises infrastructure and production facilities

Human capital investment comprises  attending college and spending on schools.

Economic growth theories submit that investment in capital goods and human capital increase the economic growth of an economy