If Changes in Economic Policy Could Cause the Growth Rate

question 11

Multiple Choice

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years, then GDP would be ________% higher after 100 years than it would have been otherwise.

• A) 1.3
• B) 2.0
• C) 2.7
• D) 3.8
• E) 4.2

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, calculated for a specific period.

Total Cost Variance

This refers to the difference between the budgeted or standard cost of production and the actual cost incurred.

Factory Overhead Cost

All indirect costs associated with manufacturing, excluding direct materials and direct labor. These can include utilities, maintenance, and salaries of non-direct labor employees.

Variance Report

A document that compares actual financial performance to planned or budgeted performance, highlighting variances between these figures.