The Highest Amount of Output an Economy Can Sustainably Produce

question 109

Multiple Choice

The highest amount of output an economy can sustainably produce and sell using existing production processes and resources is called:

• A)nominal output.
• B)actual output.
• C)potential output.
• D)utilized output.

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Definitions:

Plant Asset

A long-term physical asset that is used as part of a company's operations to help in generating revenues, similar to a fixed asset but specifically related to manufacturing.

Land

Real property consisting of natural resources and geographic space, which has various uses such as agricultural, commercial, or residential.

Unearned Revenues

Income received by an individual or company for a service or product that has yet to be provided or delivered.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a business’s operating cycle, whichever is longer.