Assume the Total Real Output of a Developing Country Increases

question 190

Multiple Choice

Assume the total real output of a developing country increases from $8 billion to $8.2 billion, while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has

• A) increased by $25 per person.
• B) decreased by $25 per person.
• C) increased by $533 per person.
• D) decreased by $533 per person.

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Definitions:

Par-Common Stock

The face value of a share of common stock as designated in the corporate charter.

Paid-In Capital

Money that investors have given to a corporation in exchange for equity, representing the capital contribution from shareholders when issuing and selling shares.

Common Stock

A type of security that represents ownership in a corporation, with holders typically having voting rights and receiving dividends.

Organizational Expenses

Costs related to the formation of a corporation, partnership, or other enterprise, such as legal fees and state incorporation fees.