Question

1. what is the relationship between capital goods (physical capital) and gross domestic product? (1 point)

supply and demand determine what services are provided.
in order for trade to exist in europe, monetary values must be converted
some exchanges are in place to protect countries, while others exist to block dangerous products
the more investment a country makes in new technology, the more likely it is that the services produced in the country will increase.

Explanation:

To determine the relationship between capital goods (physical capital) and GDP, we analyze each option:

• First option: Talks about supply - demand and services, not related to capital goods and GDP.
• Second option: About currency conversion in European trade, irrelevant.
• Third option: About exchanges protecting countries/blocking products, not related.
• Fourth option: Investment in new technology (a form of physical capital) leads to increased services production, which impacts GDP. More physical capital (like new technology) can boost production capacity, thus increasing GDP as more goods/services are produced.

Answer:

The more investment a country makes in new technology, the more likely it is that the services produced in the country will increase.