1. Briefly explain the relationship between the quality and quantity of the fixed capital stock in...
1. Briefly explain the relationship between the quality and quantity of the fixed capital stock in a country, and that country’s ability to increase output over time.
Homework Answers
Answer:- Fixed capital stock of a country refers to the constitution of tangible and intangible durable assets in a country, which cannot be converted into cash within a time period of one year.
Relationship between the fixed capital stock and the country's ability to increase output over time is very simple. If the country has a high quantity of high quality fixed capital, then it would be very easy for that particular country to increase the output over a period of time. This is because fixed capital stock is a very important factor for the production of output in a country.
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