For a Given State of Unchanging Production Technologies Without the Technological

question 112

Multiple Choice

For a given state of unchanging production technologies without the technological change:

• A)no further growth in living standards can be achieved at some point in time.
• B)further growth in living standards can be achieved if investment is higher than consumption.
• C)further growth in living standards can be achieved at some point in time.
• D)further growth in living standards can be achieved if saving is higher than investment.

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Definitions:

Factors Of Production

The resources used to produce goods and services. Labor and capital are examples of factors.

Increasing Opportunity Cost

Increasing opportunity cost implies that producing more of one good requires giving up an increasing amount of production of another good, reflecting resource specialization.

Consumer Goods

Products and services that are purchased for personal use or consumption.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to allocate resources in a particular way.