If We Compare the U

question 175

Multiple Choice

If we compare the U.S. GDP and the Chinese GDP,

• A) real U.S. GDP per person was much larger than China's real GDP per person when purchasing power parity prices are used but is less than China's real GDP per person when exchange rate prices are used.
• B) real GDP per person is about the same in the two countries.
• C) China's real GDP per person is less than real GDP per person in the United States.
• D) U.S. real GDP per person is less than China's real GDP per person once we adjust for currency differences.

---

Definitions:

Standard Costs

Predetermined costs for manufacturing a product or delivering a service, used as targets or benchmarks.

Variances

The differences between planned, budgeted, or standard costs and actual costs.

Widgets

A generic term often used to refer to any product or manufactured item for examples or hypothetical situations.

Fixed Factory Overhead

The regular, consistent costs associated with operating a factory that do not vary with production volume, such as rent, salaries, and utilities.