ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A better educated and trained labor force
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The discovery of new natural resources
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A plague that reduces the population
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Investment in capital resources
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Detailed explanation-1: -Investment in infrastructure by the government will increase the potential GDP as their contribution is likely to remain for a longer time period.
Detailed explanation-2: -Not all productive activity is included in GDP. For example, unpaid work (such as that performed in the home or by volunteers) and black-market activities are not included because they are difficult to measure and value accurately.
Detailed explanation-3: -Answer and Explanation: The supply of money has no effect on potential GDP.
Detailed explanation-4: -Sales of used goods. Illegal sales of goods and services (which we call the black market) Transfer payments made by the government. Intermediate goods that are used to produce other final goods.