Question

Using the context of an economy’s existing inputs, market and legal institutions, what term is used to describe the maximum quantity that an economy can produce?

Answer 1

GDP - Gross Domestic Product is the correct answer.

Step-by-step explanation:

GDP is the gross domestic product of an economy's output during a specific time period. Using the context of an economy’s existing inputs, market and legal institutions, GDP can be used to describe the maximum quantity that an economy can produce.

This is only possible when the economy is practicing full employment of labor force available in the market.