The Potential Output of a Country Would Increase as a Result

question 58

Multiple Choice

The potential output of a country would increase as a result of each of the following, except:

• A) an increase in population.
• B) an increase in capital per worker.
• C) technological innovation that increases labor productivity.
• D) depreciation of the capital stock.

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Definitions:

CVP Graph

A visual representation of the Cost-Volume-Profit analysis, illustrating the relationship between costs (both variable and fixed), volume of production, and the resulting profit or loss.

Management

The process of dealing with or controlling things or people within an organization.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Fixed Costs

Costs that do not vary with the level of production or business activity, such as rent or salaries.