Question

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. As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are):_______.a. 2,4,5, and 6 only.b. 1,2,5, and 6 only.c. 2,5, and 6 only.d. 1.3, and 4 only.

Answer 1

Answer:

The efficiency factor of economic growth ideally refers to the accomplishment of the optimal level of production in the economy with the least production costs or expenses.Hence,the correct answer to the question is option 4 only.

Explanation:

Unlike the supply and demand factors related to economic growth,the efficiency factor mainly construes the expansion or improvement of the productive capacities of the factors/inputs and resources of production in the economy.Now,it does not imply the expansion of the overall production level or the quantity and quality of the existing factor inputs or productive resources in the economy.It rather emphasizes on increasing the productive and efficiency value or level of the resource endowments in the production process.Hence,the improvement of the productivity and efficiency of the factors/inputs of production and endowments entails improvement of the productive potentials and consequently leads to optimum production level that can be achieved by ensuring the least possible production costs or expenses and the increased productive capacities and efficiency level of the factor inputs and resource endowments in the economy used in the production.