The Rule of 72

question 63

Multiple Choice

The rule of 72

• A)Refers to the base year from which growth rates are measured.
• B)Shows the number of years it takes for productivity to triple.
• C)Is the procedure for calculating percentage increases in the growth rate.
• D)Can be used to determine how long it will take for GDP to double.

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Definitions:

Production Function

A mathematical model that describes the relationship between inputs used in production and the output of goods or services.

Technically Feasible

A term describing any production process, product, or innovation that can be accomplished with current technology and methodology.

Production Plan

A detailed outline of what products a business will make, the resources required, and the timeline for producing them.

Labor

Human labor, including both cognitive and physical activities, employed in the manufacture of products and provision of services.