If a Nation Is Going to Achieve Its Full Potential

question 59

Multiple Choice

If a nation is going to achieve its full potential, it must have

• A) a low rate of savings and a high rate of current consumption.
• B) low real interest rates.
• C) a central planning agency to allocate investment funds.
• D) a mechanism to attract savings and channel them into productive investment projects.

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Definitions:

Revenues

The total income generated by a business or an economy from its operational activities, such as the sale of goods or services before any expenses are deducted.

Costs

Costs refer to the expenses incurred in the production of goods or services, including materials, labor, and overhead.

Marginal Product

The growth in productivity that occurs when an extra unit of input is added, with all other inputs remaining the same.

Profit

The financial benefit realized when revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.