C. Society can increase its output and income by increasing its resources and the productivity of the resources its resources and the productivity of the resources.
More about increase in output:
Increases in output or productivity can only result from improvements in the inputs used in the manufacturing process or from improvements in how effectively those inputs are used.
Increases in inputs have a negative impact on society in several ways more labor means less leisure time; more capital investment implies less current consumption; and more material inputs means less natural resource reserves.
Our chance to enhance production without increasing inputs or paying these costs is productivity growth. Since 1947, the U.S. corporate sector has been able to create nine times more goods and services with only a little increase in labour hours thanks to productivity gains.
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