Potential Output Depends on All of the Following Except

question 55

Multiple Choice

Potential output depends on all of the following except:

• A)Technology
• B)The number of firms in the economy
• C)The size of the capital stock
• D)The number of people who can work

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Definitions:

Earnings Differential

The difference in wages or salaries arising from differences in occupation, education, experience, or other factors.

Primary Job Market

The sector of the job market that consists of high-paying jobs which often require a higher education or specialized skills.

Income Disparity

The unequal distribution of income within a population, often leading to social and economic inequality.

Economic Rent

Income earned from a factor of production that exceeds the owner's opportunity cost, often due to unique advantages or monopolistic control.