One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.It requires that society
A)conserve resources for future generations.
B)sacrifice consumption goods and services now in order to enjoy more consumption in the future.
C)recycle resources so that future generations can produce goods and services with the accumulated capital.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The tradeoff people face when it comes to capital accumulation is sacrificing present consumption for future consumption. Capital accumulation involves investing resources today in order to increase productivity, which leads to higher consumption and standards of living in the future. This requires society to make tradeoffs between present and future consumption.