Increases in a country's endowments of factors of production increase current output, but do not contribute to long-run economic growth.

Question

Quizplus · Accepted Answer

Increases in a country's endowments of factors of production can contribute to long-run economic growth by increasing the potential for future output, as long as the country also invests in education, innovation, and infrastructure to fully utilize and improve the efficiency of these factors.

Increases in a Country's Endowments of Factors of Production Increase