The _______ captures how inputs of production are related to output.

Question

Quizplus · Accepted Answer

The production function captures how inputs such as labor, capital, and technology are related to output. It shows the maximum amount of output that can be produced from a given set of inputs. The consumption function shows how consumption spending is related to income or wealth, the GDP deflator measures the price level of goods and services in an economy, and the saving function shows how saving is related to income or wealth. However, none of these capture the relationship between inputs and output as directly as the production function.

The _______ Captures How Inputs of Production Are Related to Output