Which of the Following May Result in Failure to Utilise

question 9

Multiple Choice

Which of the following may result in failure to utilise the freed up resources flowing from improved performance?

• A) Difficulty in disposing of excess equipment
• B) Inability to increase sales to take up the idle capacity
• C) Imbalance between resources made idle and those required for increasing activity levels
• D) All of the given answers

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Definitions:

GDP Deflator

An economic measure of inflation that divides the nominal GDP by the real GDP and multiplies by 100, showing how much prices have changed over a specified time.

Real GDP

The total value of all goods and services produced by a country adjusted for inflation, reflecting the real quantity of goods and services produced.

Percentage Change

A mathematical calculation that describes the degree of change over time, often used to compare the difference between two numbers expressed as a fraction of the initial value.

GDP Deflator

A price index that measures the change in the price level of all new, domestically produced, final goods and services in an economy.