The country of Saudi Arabia has invested heavily in improving its human capital and physical capital. Which is a likely result of this increased investment?

Atrade increases
Bstandard of living goes down
CGross Domestic Product (GDP) rises
DGross Domestic Product (GDP) falls

Verified Answer :

c would be the correct answer it should be

Answer:

c. Gross Domestic Product (GDP) rises

Explanation:

Labor and physical capital are the two main resources of production in a market economy. If a country makes investments in these resources, productivity tends to increase. Consequently, more goods will be produced for consumption and export. Since the definition of GDP is the sum of all goods and services produced by an economy over a given period of time, increased productivity will lead to an increase in GDP.