Question

All of the following will cause an increase in economic growth except a change in technology. an increase in the amount of capital goods. an increase in the degree of excess capacity. an increase in the factors of production. an increase in education.All of the following will cause an increase in economic growth except a change in technology. an increase in the amount of capital goods. an increase in the degree of excess capacity. an increase in the factors of production. an increase in education.

Answer 1

Answer:

All of the following will cause an increase in economic growth except:

• an increase in the degree of excess capacity.

Explanation:

An increase in the degree of excess capacity means that the productivity of a nation decreases, resulting in a decrease of GDP (opposite to economic growth or expansion). The degree of excess capacity refers to the unused capacity of factories or service suppliers, e.g. if the sales of cars decrease, manufacturers will produce less cars, increasing excess capacity of their facilities.