Author Question: Why might an economist argue that it could be damaging to the economic growth of a nation if it ... (Read 69 times)

Capo

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Why might an economist argue that it could be damaging to the economic growth of a nation if it focused mostly on the production of consumer goods?
 
  What will be an ideal response?

Question 2

Why is the manager of a company typically not the same person as an entrepreneur?
 
  What will be an ideal response?



meow1234

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Answer to Question 1

The reason for concern is that focusing too much on the production of consumer goods necessarily implies cutting back on the production of capital goods. The problem is that economic growth is dependent on the production of capital goods.

Difficult: M

Answer to Question 2

An entrepreneur is usually the one that assumes the risk of the firm. Often the management of the company can be someone that the entrepreneur can hire who does not have to exhibit risk-taking qualities.



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