What are the determinants of the potential output for an economy?
What will be an ideal response?
The key determinants are the levels and quality of economic inputs, these include the size and quality of the labor force (human capital), the size and quality of the capital stock, the amount and quality of natural resources. In addition, the level of technology that exists can contribute to how well these inputs are used to produce output. This is the basic production function that is the foundation of any study of the relationship between output and inputs.
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One economist says that raising taxes on gas would be in the social interest. What does this economist mean?
A) Higher taxes on gas would benefit society as a whole. B) Raising taxes on gas would benefit most of the people. C) Higher taxes on gas would benefit everyone. D) Both answers A and C are correct.
The market where firms purchase factors of production is referred to as the
a. product market. b. resource market. c. capital market. d. foreign exchange market.
The unionization rate grew most rapidly in the United States between
A. 1935 and 1945. B. 1980 and 1988. C. 1950 and 1953. D. 1880 and 1901.
An increase in accrued wages during the accounting period represents an increase in cash.
a. true b. false