Which of the following can partially explain long-term growth in production?
A) improvements in the "rules of the game" that facilitate production and exchange
B) the peaks and troughs of the business cycle (or economic fluctuations)
C) trade surpluses that lead to accumulations of precious metals
D) federal government budget deficits

Question

Which of the following can partially explain long-term growth in production?  
A) improvements in the "rules of the game" that facilitate production and exchange 
B) the peaks and troughs of the business cycle (or economic fluctuations) 
C) trade surpluses that lead to accumulations of precious metals 
D) federal government budget deficits

Quizplus · Accepted Answer

Improvements in the "rules of the game" that facilitate production and exchange, such as technological advancements, legal frameworks, and political stability, can lead to long-term growth in production. The other options listed (B, C, and D) may have short-term effects on production but do not provide a lasting explanation for long-term growth.

Which of the Following Can Partially Explain Long-Term Growth in Production