Figure 8-1 -Refer to Figure 8-1. a Movement from F to B

question 89

Multiple Choice

Figure 8-1
-Refer to Figure 8-1. A movement from F to B

• A) will increase real GDP and represents economic growth.
• B) will increase real GDP but does not represent economic growth.
• C) implies that the country's productive ability has increased.
• D) will not increase real GDP or potential output.

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Labor Productivity

The measure of economic output per unit of input, typically calculated as total output divided by the number of hours worked.

Rules Of The Game

The laws, customs, manners, conventions, and other institutional elements that determine transaction costs and thereby affect people’s incentive to undertake production and exchange.

Tax Laws

The legal standards and regulations governing the collection of taxes by the government from individuals and organizations.