Potential output can be increased by ____ or by ______?
Correct answer: D. increasing the use of all inputs, technical advances
- A. increasing the use of labor increasing the use of land
- B. increasing the use of capital increasing the use of labour
- C. increasing the use of land increasing the use of capital
- D. increasing the use of all inputs, technical advances
Explanation
Production can rise through greater use of all factor inputs, such as labour, land and capital, or through technological progress that makes existing inputs more productive. Increasing only one input is not the complete general answer.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
In the neoclassical theory of growth a higher saving rate leads to ?
Economic growth may depend upon _____ and _____?
The growth rates of economies tend to converge because ________ is easier when capital per worker is low and because of?
Identify below what does NOT affect productivity ?
Policies to encourage productivity do not include ?
The percentage of the working age population that is part of the workforce is known as the ?