Which of the following is the best definition of economic growth?
A) The sustained expansion of production possibilities
B) The opportunity cost of consumption
C) Increased development of land and entrepreneurship
D) The opportunity cost of capital
E) The investment in capital and consumption goods by an economy

Question

Quizplus · Accepted Answer

Economic growth refers to the sustained expansion of production possibilities, which refers to the ability of an economy to increase its level of output of goods and services over time. This is typically measured by changes in real GDP over time. Choice B is incorrect because opportunity cost refers to the value of the next best alternative that must be given up in order to pursue a certain action, and is not directly related to economic growth. Choice C is incorrect because while increased development of land and entrepreneurship may contribute to economic growth, it is not a comprehensive definition of it. Choice D is incorrect because the opportunity cost of capital is also not directly related to economic growth. Choice E is partly correct, as investment in capital is often a key factor in economic growth, but consumption goods alone do not drive economic growth.

Which of the Following Is the Best Definition of Economic