Suppose GDP in an Economy Is $144 000 , the Unemployment

question 3

Multiple Choice

Suppose GDP in an economy is $144 000 , the unemployment rate is 10 percent and there are 8000 people in the labour force. Calculate the GDP per worker for this economy.

• A)$10
• B)$14.40
• C)$18
• D)$20
• E)$80

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Definitions:

Variable Costing

An accounting method that only considers variable costs (costs that change with production volume) in product pricing and decision making.

Unit Product Cost

The cumulative expense of manufacturing a single product unit, encompassing direct materials, direct labor, and overhead costs.

Operating Income

This represents the earnings before interest and taxes (EBIT) derived from a company's principal operating activities.

Year 2

Refers to the second year of a specific time frame, project, or financial period.