Which of These Is Most Likely to Reduce the Potential

question 131

Multiple Choice

Which of these is most likely to reduce the potential output of an economy?

• A)An increase in the size of the labor force
• B)A deterioration in the quality of the labor force
• C)A decrease in the cost of using computers
• D)A decrease in the price level
• E)An increase in the price level

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Definitions:

Mental Set

A cognitive framework consisting of a person's usual way of approaching and solving problems, often leading to a fixation on previous solutions.

Inhibit

To hold back, hinder, or restrain an action, process, or behavior.

Creativity

The ability to produce new and valuable ideas.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method or decision.