Country a Has a Higher GDP Than Country B

question 77

Multiple Choice

Country A has a higher GDP than country B.What does this mean?

• A) It means that on a per-capita basis the residents of country A are relatively better off (in terms of the goods and services they have available to them)than the residents of country B.
• B) It means that on a per-capita basis the residents of country A are richer than the residents of country B.
• C) It means that more goods and services were produced in country A than country B.
• D) It means that the total market value of the final goods and services produced in country A is greater than the total market value of the final goods and services produced in country B.
• E) a and d

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Definitions:

Production Functions

A formula that relates the output of goods and services to the inputs used in their production.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the physical factors of production.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or physical factors of production.

Production Functions

A mathematical relationship that describes how input factors such as labor and capital are converted into output or goods and services.