Potential GDP Is the Output That Would Be Produced If

question 50

Multiple Choice

Potential GDP is the output that would be produced if the economy was experiencing

• A) no unemployment.
• B) free markets and international trade.
• C) no inflation.
• D) full employment.

---

Definitions:

Skill-based Pay Plan

A compensation strategy where employees are paid based on the skills and knowledge they possess, rather than their job position or title.

Productivity

The efficacy and efficiency with which input resources (such as time, labor, and materials) are converted into outputs, such as goods or services.

Service Quality

The assessment of how well a delivered service matches customer expectations, often a critical component of customer satisfaction in business.

Profit Sharing

A company program in which a portion of the company's profits is distributed to its employees, often based on their performance and the company's earnings.