Which of the Following Provides the Best Explanation for Why

question 129

Multiple Choice

Which of the following provides the best explanation for why GDP may increase over long periods of time?

• A)increase in capital stock
• B)increase in emigration
• C)increase in mortality rates
• D)increase in interest rates
• E)increase in unemployment

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Definitions:

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Income Effect

The change in an individual's consumption resulting from a change in their real income, due to price changes or other factors.

Law of Demand

indicates the inverse relationship between the price of a good or service and the quantity demanded, with demand typically decreasing as prices increase, all else being constant.

Total Utility

The overall satisfaction or happiness received from consuming a certain amount of goods or services.