help 4 eco

[theigstudent]

1
(a) What is meant by investment?
(b) In the first sentence of the article you will find the phrase ‘current market prices’. What does
this phrase tell you?
c
(ii) Explain the link between a rise in investment and a rise in economic growth

Q pap  nov 03 paper 4

[theigstudent]

any 1 taking eco plz help

[Freaked12]

1
(a) What is meant by investment?Investment could be in the form of employing more labour,more machiney or adding to the piles of stock
(b) In the first sentence of the article you will find the phrase ‘current market prices’. What does
this phrase tell you? current market prices are used to compare figures not involving inflation as it fluctuates the prices so not giving the real value.So current market prices means not being changed according to inflation
c
(ii) Explain the link between a rise in investment and a rise in economic growthA rise in investment will mean more labour or more machinery being employed to produce more output,so the productivity increases thereby increasing the real output which would result in the rise in GDP as GDP means a rise in the value of the goods and services produced in a year

Q pap  nov 03 paper 4

[theigstudent]

Thanks a lot
+ rep