If a Country's GDP Is $200 Million, and Its Total

question 230

Multiple Choice

If a country's GDP is $200 million, and its total population is 10,000, but only 8,000 of these people work, the country's per capita income is:

• A) $20,000.
• B) $25,000.
• C) $11,111.
• D) $100,000.

---

Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, which are incurred regardless of the amount of goods or services produced.

Economic Profit

Profit that accounts for both explicit costs and opportunity costs.

Economic Profit

The financial gain made in a transaction after subtracting both the explicit and implicit costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.