Which of the Following Is the Single Most Important Determinant

question 123

Multiple Choice

Which of the following is the single most important determinant of a nation's standard of living in the long run?

• A) high economic growth rates
• B) developing a market economy of conscious design
• C) higher prices for the necessities of life
• D) productivity of its resources
• E) developing agricultural self-sufficiency

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Definitions:

Optimal Purchasing

The process of buying goods or services in the quantity and timing that minimizes costs and maximizes value to the purchaser.

Indifference Curves

Graphical representations used in economics to show different combinations of two goods that give an individual equal satisfaction and utility.

Budget Constraints

The limits imposed on household choices by income, wealth, and product prices, determining the combination of goods and services they can afford.

Interest Rate

The percentage of a sum of money charged for its use, determining how much borrowers pay to lenders for loans or how much they earn on deposits.