The Quantity of Goods and Services That Can Be Produced

question 199

Multiple Choice

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

• A)technology.
• B)labor productivity.
• C)real GDP.
• D)human capital.

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Definitions:

Trade

The exchange of goods and services between people or entities.

Total Surplus

The sum of consumer surplus and producer surplus in a market, reflecting the total net benefit to society from the production and consumption of goods and services.

Trade

The exchange of goods and services between parties, which can be within or across national borders.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.