The economy's level of output depends upon (1)the
A) amount of land and capital available for labor to use and (2)the state of technology and types of inputs available
B) cost of land and capital and (2)the cost of labor
C) availability of land and (2)the availability of capital
D) state of technology and (2)the cost of land
E) state of technology and (2)the types of inputs available

Question

Quizplus · Accepted Answer

The economy's level of output depends on the amount of land and capital available for labor to use and the state of technology and types of inputs available. The cost of land and capital or the cost of labor may affect the level of output indirectly, but they are not the primary factors that determine it. The availability of land and capital is important, but it is only one part of the equation. The state of technology and the types of inputs available also play a critical role in determining the level of output. Therefore, choice A is the best option.

The Economy's Level of Output Depends Upon (1)the