Increases in the prices of services due to improvement in its quality indicate a(n) _____.

Question

Quizplus · Accepted Answer

An increase in the price of services due to improvement in quality indicates an increase in output, as more resources are being utilized to create a higher quality service, leading to a higher price. This does not indicate a decline in productivity or real GDP, as the improvement in quality can lead to higher productivity and economic growth. It also does not necessarily indicate a decline in manufacturing output, as this pertains more to the production of physical goods rather than services. While it may involve some degree of technological progress, an increase in prices due to quality improvement is primarily an indicator of increased output.

Increases in the Prices of Services Due to Improvement in Its