Question

Question 7 (1 point)

Which of the following statements is true?

a	Two (of the four) determinants of growth are increases in the quantity and quality of resources, and technological progress. They will increase the potential size of an economy’s GDP.
b	Technology is the way we combine resources to produce goods and services.
c	Technology is the practical application of scientific knowledge to production.
d	All of the above.
e	Only a) and b)

Question 8 (1 point)

Which of the following statements is true?

a	In general, technology is embodied in capital.
b	The other two determinants of economic growth are the demand factor and efficiency.
c	To achieve the higher production potential created by the supply factors, households, firms, and the government must reduce their purchases of goods and services.
d	All of the above.
e	Only a) and b)

Question 9 (1 point)

Which of the following statements is true?

a	Economic efficiency and full employment contribute to faster economic growth.
b	The economy must use its resources in the least costly way to provide the specific mix of goods and services that maximizes people’s well-being.
c	The least important determinant of economic growth is increases in productivity.
d	All of the above.
e	Only a) and b)

Answer 1

7 . Option D All of the above.

There are six major determinants of growth. Four of these are typically grouped under supply factors which include natural resources, human resources, capital goods and technology. The other two are demand and efficiency factors.Economic growth only comes from increasing the quality and quantity of the factors of production, which consist of four broad types: land, labor, capital, and entrepreneurship. The factors of production are the resources used in creating or manufacturing a good or service in an economy.it is the technological progress which keeps the economy moving. Inventions and innovations have been largely responsible for rapid economic growth in developed countries.

8. Option E

But most technologies are embodied in physical capital.Example To  increase the labor productivity of office workers by using the discovery of computerized word processing, millions of typewriters had to be replaced by computers and printers.The demand factor is defined as the ratio of the maximum demand of a system (or part of a system) to the total connected load for that part being considered.High efficiency increases growth rate when it is coupled with full employment

9.Option E

Employment gives the purchasing power that eventually drives the demand for various goods and services. Increased demand leads to increased production thus accerlating economic growth. Economic efficiency implies an economic state in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency. The higher the economic efficiency the higher will be the economic growth.