which of the following activities will not lead to economic growth?
Answer Details
Out of the given options, massive importation of consumer goods will not lead to economic growth.
Economic growth is defined as an increase in a country's output of goods and services over time. It is typically measured by the growth rate of Gross Domestic Product (GDP). Economic growth occurs when a country increases the factors of production such as capital, labor, and technology.
Massive importation of consumer goods means that a country is importing finished goods such as clothes, electronics, and cars from other countries. While this may provide immediate satisfaction to consumers, it does not contribute to economic growth because it does not increase a country's factors of production.
On the other hand, massive importation of capital goods (such as machinery and equipment) can boost economic growth as it helps to increase a country's production capacity. Intensive capital formation locally refers to investing in the production of capital goods locally, which can also increase a country's production capacity.
Similarly, the use of modern technology can help a country to produce more efficiently, increase productivity and ultimately boost economic growth.
In summary, while the importation of consumer goods may have short-term benefits, it does not contribute to a country's long-term economic growth.