The Determinants of Economic Growth Include All of the Following

question 59

Multiple Choice

The determinants of economic growth include all of the following except

• A) technological improvement.
• B) improvements in the quality of factors of production.
• C) a stable price level.
• D) increases in the quantity of factors of production.

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Definitions:

Willingness to Pay

The maximum amount an individual is prepared to spend for a good or service, reflecting the value they assign to it.

Consumer Surplus

The difference as marked by what consumers are prepared to spend on a good or service versus the actual payment made.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit.