Of factors which affect any economy's production potential, the best two listed below are:

Question

Quizplus · Accepted Answer

Resources and technology are the two main factors that affect an economy's production potential. Resources refer to the available land, natural resources, labor force, and capital that are used to produce goods and services. Technology refers to the knowledge, skills, and techniques that are used to transform those resources into useful products. Together, these factors determine the quantity and quality of goods and services that can be produced in an economy, and therefore have a significant impact on economic growth and development. Prices, wages, taxes, and outputs are also important variables in the economy, but they are more directly influenced by the production potential than the other way around.

Of Factors Which Affect Any Economy's Production Potential, the Best