Increases in Resources and Efficiency Would Increase Potential GDP

question 14

True/False

Increases in resources and efficiency would increase potential GDP.

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Definitions:

Output Efficiency

A state where resources are allocated in the most effective manner, producing the maximum amount of goods and services.

Willingness To Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting their valuation of it.

Trade Agreement

A contractual arrangement between countries regarding their trade relationships and tariffs.

Microeconomics

Branch of economics that deals with the behavior of individual economic units—consumers, firms, workers, and investors—as well as the markets that these units comprise.