Question

The ability to produce more output without using any more inputs is called __________.

a) Capital deepening
b) Diminishing returns
c) Technological progress
d) Economic growth

Answer 1

Technological progress allows for increased output without using more inputs.

Step-by-step explanation:

The ability to produce more output without using any more inputs is called technological progress. Unlike capital deepening, which leads to diminishing returns, technological progress allows for the development of new and more efficient ways of utilizing the same amount of capital, resulting in increased output. This can be illustrated by a shift upwards of the production function curve.