Which of the Following Is a Measure of Economic Growth

question 54

Multiple Choice

Which of the following is a measure of economic growth?

• A)the marginal change in nominal output divided by total output from the previous year
• B)the advancement in the quality of a nation's technology
• C)the annual percentage change in per capita real output of goods and services
• D)the rate of business investment and capital formation

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Definitions:

Cost-output Elasticity

A measure of how responsive the total cost of production is to a change in the quantity produced.

Long-run Cost Function

A representation of the relationship between output and the cost of production when all inputs, including capital, can be varied.

Short-run Cost Function

The costs a company incurs in the production of goods or services within a short period, considering some inputs are fixed.

Long-run Cost Curve

A graphical representation showing the minimum cost at which a firm can produce any given level of output in the long run, when all inputs are variable.