The Growth Rate of Total Output Equals

question 38

Multiple Choice

The growth rate of total output equals

• A)Gross investment minus depreciation.
• B)Real GDP per capita growth rate.
• C)The growth rate of the labor force plus the growth rate of productivity.

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Definitions:

Implicit Costs

Non-out-of-pocket costs, often opportunity costs, that represent the lost opportunity to use resources in an alternative way.

Short Run

The period of time during which at least one input, such as plant size, is fixed and cannot be changed.

Long Run

A period in economics where all factors of production and costs are variable, allowing companies to adjust all inputs and operations to market demands.

Fixed Resource

A resource or asset in production whose quantity cannot easily be increased or decreased in the short term.