The Total Amount of Output a Country Could Reasonably Produce

question 36

Multiple Choice

The total amount of output a country could reasonably produce if all of its people and capital resources were fully engaged is called:

• A) potential output.
• B) full output.
• C) positive output gap.
• D) economic growth.

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Definitions:

Opportunity Cost

The cost of choosing one option over another, typically expressed as the value of the forgone alternative.

Output

The quantity of goods or services produced within a given timeframe.

Thinking At The Margin

The concept involves making decisions based on the additional benefit or cost of the next unit of production or consumption.

Air Travel

The act of moving from one place to another through the atmosphere, typically using airplanes or other aircraft.