The Extra Cost That Results from an Extra Unit of an Activity

question 131

Multiple Choice

The extra cost that results from an extra unit of an activity is the

• A) marginal benefit.
• B) marginal surplus.
• C) marginal cost.
• D) reservation cost.
• E) same as the opportunity cost.

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Definitions:

Real GDP Per Person

A measure of the economic output of a country adjusted for price changes (inflation or deflation) and divided by the total population.

Nominal GDP

The gross domestic product calculated at current market prices, reflecting the economy's size without accounting for inflation's effects.

GDP Deflator

An economic measure that adjusts the nominal GDP to reflect changes in price levels, providing a more accurate picture of an economy's size over time.

GDP Per Person

Gross Domestic Product per capita; a measure of a country's economic output that accounts for its number of people.