In the long run, what determines the level of total production of goods and services in an economy?
A) the interest rate and the amount of national saving
B) the quantity of capital, quantity of labor, and production technology
C) consumption, investment, and government spending
D) the marginal products of capital and labor, constant returns to scale, and competition
Correct Answer:
Verified
Q2: In the circular flow diagram, firms receive
Q3: A competitive firm:
A) is small relative to
Q4: The neoclassical theory of distribution:
A) was developed
Q5: If bread is produced by using a
Q6: An economy's factors of production and its
Q7: The price received by each factor of
Q8: The circular flow model shows that households
Q9: The production function feature called "constant returns
Q10: The marginal product of labor is:
A) output
Q11: In the long run, the level of
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