Asked by Andrae Rahming on May 03, 2024
Verified
Refer to Figure 25-2. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.
Capital
Assets or wealth, whether in the form of money or other resources, that are used or invested to generate income.
Determinant Of Output
Factors that influence the quantity of goods and services an economy can produce, such as labor, capital, technology, and government policies.
- Acquire knowledge about the significance and examples of diverse factors contributing to production in the economic sphere.
- Understand the principle of productivity and its influencing factors.
Verified Answer
RK
Rohtash KumarMay 06, 2024
Final Answer :
No, we do not have to assume that capital is the only determinant of output. Rather, other determinants of output, including human capital, natural resources, and technology, are held fixed in drawing the figure.
Learning Objectives
- Acquire knowledge about the significance and examples of diverse factors contributing to production in the economic sphere.
- Understand the principle of productivity and its influencing factors.