If Population Growth Is Less Than Output Growth for a Country

question 52

Multiple Choice

If population growth is less than output growth for a country,

• A)Real GDP has decreased.
• B)Average living standards will decrease.
• C)GDP must have fallen at a fairly rapid rate.
• D)The per capita living standard will increase.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Noncash Item

Transactions or items that appear on an income statement or in financial statements but do not affect cash flow, such as depreciation and amortization.

Financing Activities

Transactions related to raising capital and repaying investors, included within the cash flow statement.

Creditors

Individuals or institutions that lend money or extend credit, and to whom an entity owes money.