Over the past decade, a nation's real Gross Domestic Product (GDP) grew at a constant rate of 9 percent per year while its population grew 8 percent annually. Forecasters predict that during the coming decade, real GDP will continue to grow 10 percent annually, but the population growth rate is expected to drop to 7 percent annually. If the forecasters are correct, which of the following will be TRUE?
A. The annual rate of growth of per capita real GDP will increase from 1 percent to 3 percent.
B. The annual rate of growth of per capita real GDP will decline from 2 percent to 1 percent.
C. The annual rate of growth of per capita real GDP will increase from 1 percent to 8 percent.
D. The annual rate of growth of per capita real GDP will decline from 3 percent to 2 percent.
Answer: A
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A) total product multiplied by the quantity of labor employed. B) the total product produced C) the quantity of labor employed divided by total product D) total product divided by the quantity of labor employed
What is meant by capital stock?
What will be an ideal response?
Increasing returns to scale in production means
A) more than 10% as much of all inputs are required to increase output 10%. B) less than twice as much of all inputs are required to double output. C) more than twice as much of only one input is required to double output. D) isoquants must be linear.
Deadweight loss
What will be an ideal response?