Which of the Following Best Describes the Concept of Potential

question 149

Multiple Choice

Which of the following best describes the concept of potential output?

• A)The total output that can be produced when all factors of production (land,labour,and capital)are fully employed.
• B)The total output that can be produced when the economy is in short-run economic equilibrium.
• C)The total output that can be produced when all productive resources (land,labour,and capital)are used at their maximum capacity.
• D)The total output that could be produced in the future when technological advances allow for a higher level of output.
• E)The total output that could be produced if no productive resource (land,labour,and capital)was ever left idle.

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