Which of the Following Is the Best Definition of Economic

question 167

Multiple Choice

Which of the following is the best definition of economic growth?

• A)The opportunity cost of capital
• B)The investment in capital and consumption goods by an economy
• C)The opportunity cost of consumption
• D)The sustained expansion of production possibilities
• E)Increased development of land and entrepreneurship

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum combination of two goods or services that can be produced with available resources and technology.

Units of Guns

A quantification measure commonly used to denote the production or stockpile of firearms or, by extension, military capacities.

Units of Butter

A measure of quantity for butter, which can be used in economic examples to illustrate the concept of trade-offs or opportunity costs.

Opportunity Cost

The expense incurred by not selecting the superior alternative available when a different choice is made.