Which of the following factors is most important as a source of sustained growth in material living standards?
A)capital- labour substitution
B)decrease in cost of capital
C)changing relative factor prices
D)population increase
E)technological improvement

Question

Quizplus · Accepted Answer

Technological improvement is the most important factor for sustained growth in material living standards. It leads to increased productivity, lower costs of production, and new opportunities for innovation and entrepreneurship. Capital-labor substitution, decrease in the cost of capital, changing relative factor prices, and population increase can all contribute to growth, but they are ultimately limited without continued technological progress.

Which of the Following Factors Is Most Important as a Source