The physical and mental effort people use to produce goods and services is a description of which factor of production?

In the HO model, the production possibility frontier is bowed out due to the assumption of

A) identical tastes. B) different factor intensities in the production of the two goods. C) increasing returns to scale. D) Two of the above.

The variable used by economists as the best broad indicator of a nation's standard of living is

A) real GDP per person. B) real GDP. C) the capital-labor ratio. D) the capital-output ratio. E) multifactor productivity.