In Polynomia, Real GDP Increased by 8% and the Population

question 99

Multiple Choice

In Polynomia, real GDP increased by 8% and the population increased by 3% in 2016. In 2016, Polynomia experienced

• A) economic growth, but not an increase in living standards.
• B) economic growth and an increase in living standards.
• C) no economic growth, but an increase in living standards.
• D) an economic decline.

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Definitions:

Standard Cost System

An accounting method that uses cost estimates for labor, materials, and overhead to assign costs to products, facilitating variance analysis between expected and actual costs.

Actual Results

The real financial or operational outputs of a business, as opposed to projections or estimates.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead allocated, based on activity level.

Lubricants

Substances applied to reduce friction between surfaces in mutual contact, which ultimately reduces the heat generated when the surfaces move.