Use the Rule of 70 to Calculate How Long It

question 27

Essay

Use the rule of 70 to calculate how long it would take for an economy's real GDP per capita to double if its growth rate is:
(a) 1 percent
(b) 2 percent
(c) 3 percent
(d) 7 percent
(e) 10 percent

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Definitions:

FIFO Method

Stands for "First-In, First-Out," a technique to value inventory and determine the cost of goods sold by assuming that the oldest items are sold first.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used to create the product.

Inventory

The total value of a company's raw materials, work-in-process, and finished goods that are considered a current asset on the balance sheet.

FIFO Method

"First In, First Out," an inventory valuation method where goods first purchased or produced are the first to be sold or used.