If the Population Increases, Then Potential GDP ________, and Potential

question 71

Multiple Choice

If the population increases, then potential GDP ________, and potential GDP per hour of labour ________.

• A)increases; decreases
• B)increases; increases
• C)decreases; increases
• D)decreases; decreases
• E)increases; does not change

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Definitions:

Opportunity Costs

Refers to the benefits or gains a person or organization misses out on when choosing one alternative over another.

Consumer Goods

Products bought and used by consumers rather than by manufacturers for producing other goods.

Capital Goods

Long-term assets used in the production of goods and services, such as machinery, buildings, and equipment.

Consumer Goods

Products that are bought for consumption by the average consumer.