Why does investment in capital goods like factories and machinery help to increase a country’s gross domestic product (GDP)?
a; it makes workers less productive
b; it makes workers more comfortable
c; it makes workers productive ***
d; it makes workers unnecessary
is it c ?
Yes, c.
Yes, you are correct. The investment in capital goods like factories and machinery helps to increase a country's gross domestic product (GDP) because it makes workers productive (option c).
When a country invests in capital goods, such as new machinery and equipment, it enhances the productivity and efficiency of workers. Capital goods enable workers to produce more output in a given amount of time, thus increasing the overall level of production in the economy. This increased productivity leads to higher GDP, as more goods and services are being produced and added to the national income.
Investments in capital goods also contribute to technological advancements and innovation, which further boost a country's economic growth. By adopting advanced machinery and technology, workers can perform tasks more efficiently, leading to increased production and higher GDP.
Therefore, option c, "it makes workers productive," is the correct answer.