An economy's factors of production and its production function determine the economy's:

Question

BlackTom AI · Accepted Answer

The question asks about what an economy's factors of production and its production function determine.
Option 1: 'labor force participation rate.' While the labor force participation rate is related to labor input in an economy, it is not determined by the fundamental factors of production (which are inputs like land, labor, capital, and entrepreneurship) or the production function itself. It reflects sociopolitical, cultural, and policy-driven aspects rather than the basic production capabilities.
Option 2: 'budget surplus or deficit.' This is a fiscal outcome arising from government revenues and expenditures, not from the production capabilities or the production function of the economy. It is unrelated to how goods and services are produced at the macro level.
Option 3: 'population growth rate.' Population dynamics influence potential output, but they are not determined by the economy's factors of production or its production function. Demographics are largely exogenous to the production process, though they affect long-run supply.
Option 4: 'output of goods and services.' This is the core concept tied directly to the production function, which combines the inputs (factors of production) to produce outputs. The economy’s capacity to produce is captured by the production function and the available factors of production, making this the correct linkage.

BU.220.610.51.FA25 M2 Practice Quiz

An economy's factors of production and its production function determine the economy's:

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BU.220.610.51.FA25 M2 Practice Quiz

An economy's factors of production and its production function determine the economy's:

查看解析

登录即可查看完整答案

类似问题

Use the following graph to answer the next question, where LRATC = long-run average total cost. What happens when a firm adopts a new technology?

What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?

From the Cobb-Douglas production function we learn that there are two sources that help explain cross-country differences in per capita income: ________ and ________.

A firm's production function shows

Which of the following changes would shift the entire production function upward?

Refer to the following figure when answering the following questions. Figure 4.1: Production Function Consider Figure 4.1. For given and fixed ˉ L , the shape of this production function suggests that α in the production function Y=Kα ˉ L 1−α is ______.

A production function is a technological relationship between:

更多留学生实用工具

希望你的学习变得更简单

From the Cobb-Douglas production function we learn that there are two sources that help explain cross-country differences in per capita income: and .