Which of the following statements is true?

Question

Quizplus · Accepted Answer

Increases in a country's endowments of land, labor, and capital (factors of production) will lead to long-run economic growth as they enable the production of more goods and services, which in turn leads to an increase in the country's output capacity. This is often referred to as "capital deepening" and is a key driver of long-term economic growth. Option B is incorrect because improvements in technology can lead to both short-term and long-term economic growth. Option C is incorrect because improvements in technology can shift the production-possibility curve outward, indicating an increase in the country's output capacity. Option D is incorrect because biased growth refers to a situation where one sector of the economy experiences more growth than another, which can lead to a shift in the position of the production-possibility curve, but not necessarily a proportionate shift.

Which of the Following Statements Is True