The effects of different choices in consumption and capital goods can be studied through the examples of Hong Kong and United States which ultimately affected economic growth. Stagnancy creeps into a nation when the factors of production focus on producing goods and services and increasing the commodities of the nation, completely ignoring technological advancements.

Technology is the tool to a nation’s economic growth. It is of utmost important to direct investment in technology and innovations rather than simply increasing the current production and distribution of goods. This is the only way to improve production possibilities in future. There is an inverse relation between the decreases in consumption of current consumption to increase consumption in future. Therefore when production possibilities rise then consumption increases.

Following the concept of nation’s growth of economy the focus should be shifted to the concept of specialization in trade which helps increase production possibilities. Sellers and buyers both engage in this specialization.

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