Which of the Following Best Describes the Concept of Potential

question 49

Multiple Choice

Which of the following best describes the concept of potential output?

• A)the total output that can be produced when all factors of production (land,labour,and capital)are fully employed
• B)the total output that can be produced when the economy is in short-run economic equilibrium
• C)the total output that can be produced when all productive resources (land,labour,and capital)are used at their maximum capacity
• D)the total output that could be produced in the future when technological advances allow for a higher level of output
• E)the total output that could be produced if no productive resource (land,labour,and capital)was ever left idle

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Definitions:

Beneficiary

A person or entity entitled to receive benefits or funds from a will, insurance policy, trust, or other financial instrument.

Advertising

The process of making ads for the marketing of goods or services.

Insurance Company

A business entity that provides financial coverage to individuals and entities against potential losses or damages in exchange for premium payments.

Insurable Interest

A stake in the value of an entity or thing that provides a legal right or requirement to insure it.