ECN 204 Chapter 4: chapter 4

• School: Ryerson University
• Department: Economics
• Course: ECN 204
• Professor: Tom Barbiero

Document Summary

Differences in the living standards of a country are due to modern economic growth where some countries have experienced this phenomenon and poorer countries are countries that have not experienced economic growth. Modern economic growth is the increase in outpit per person. To increase the living standards of a country over time the country must invest current resources to increase future output. Savings is when individuals do not spend their entire income during a given interval of tie. In economics, investment is the spending for the production and accumulation of capital and additions to inventories. Economic investment is when money is invested in producing and gaining more capital and increasing the inventories of a company. Financial investment is the purchasing of financial assets such as stocks, shares or real assets or building assets with the expectation that they will make a profit off of these assets.