Suppose a Nation's Population Grows by 2 Percent And, at the Same

question 370

Multiple Choice

Suppose a nation's population grows by 2 percent and, at the same time, its GDP grows by 5 percent. Approximately how fast will real GDP per person increase?

• A) 2 percent per year
• B) 3 percent per year
• C) 5
• D) 10 percent per year

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Definitions:

Monopsony Power

A market condition where there is only one buyer for a product or service, giving that buyer significant control over prices.

Price

Price is the amount of money expected, required, or given in payment for something, playing a central role in the economics of market transactions.

Good

An item or product that can be bought, sold, or traded, contributing to an economy's wealth or resources.

Monopsonist

A market condition in which there is only one buyer for a product or service, giving the buyer substantial power over prices.