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

Question

Quizplus · Accepted Answer

Technological improvement is the most important factor in sustained growth in material living standards. It increases productivity, efficiency and reduces costs, allowing for the production of more goods and services with same resources. The other factors may have marginal impact on growth but cannot compete with the impact of technology.

Which of the Following Factors Is Most Important as a Source