Which of the Following Events Would Be Most Likely to Increase

question 39

Multiple Choice

Which of the following events would be most likely to increase an economy's potential output?

• A) a tax increase
• B) an increase in transfer payments by the government
• C) an improvement in technology
• D) an increase in net exports

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Definitions:

Evolutionary Theories

A group of ideas aimed at explaining how biological species evolve over time due to genetic variation, natural selection, and adaptation.

Primary Reaction

An initial automatic response to a given stimulus or situation, often reflexive or instinctual in nature.

Hedonic Adaptation

The noted human inclination to swiftly revert to a stable state of happiness, regardless of significant life changes or impactful positive or negative occurrences.

Subjective Well-being

A person's own evaluation of their happiness and satisfaction with life.