If Population Increases at an Average Rate of 2% Per

question 2

Multiple Choice

If population increases at an average rate of 2% per year and output increases at an average rate of 5% per year, then output per capita will double in

• A) 14.4 years.
• B) 18 years.
• C) 24 years.
• D) 36 years.

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Definitions:

Treasury Bills

Promissory notes issued (at a discount to face value) by the federal government or a provincial government to borrow money for a short term.

Auction

A public sale where goods or property are sold to the highest bidder.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing payroll, accounts payable, and inventories.