1. Improvements in technology. 2. Increases in the supply (stock) of capital goods.
3) Purchases of expanding output.
4) Obtaining the optimal combination of goods, each at least-cost production.
5) Increases in the quantity and quality of natural resources.
6) Increases in the quantity and quality of human resources.
Use the accompanying list to answer the following question. As distinct from the supply factors and
Eﬃciency factor of economic growth, the demand factor(s) of economic growth is (are)
A) 1 only.
B) 4 only.
C) 1 and 3 only.
D) 3 only.

Question

Quizplus · Accepted Answer

The demand factor of economic growth refers to the need for goods and services in an economy. Purchases of expanding output (3) directly relate to this demand, as they represent an increase in the consumption or investment within the economy. The other options listed pertain more to supply factors (such as improvements in technology, increases in capital goods, natural resources, and human resources) or efficiency factors (such as obtaining the optimal combination of goods at least-cost production), which influence the capacity and productivity of an economy rather than the demand side.

1 Improvements in Technology