Given the form of a typical production function, which of these would have the greatest impact on the output of a country?

Question

Quizplus · Accepted Answer

The factor that has the greatest impact on the output of a country is usually the level of technology or entrepreneurial ability. This could be manifested in better production techniques or more efficient use of resources. While increases in the other factors (land, capital, and labor) can also lead to increased output, they usually come with diminishing returns, meaning that each additional unit of input results in a smaller increase in output. On the other hand, increases in technology or entrepreneurial ability can lead to much larger increases in output, as they improve the productivity of all other factors of production.

Given the Form of a Typical Production Function, Which of These