If the Growth Rate of Real GDP Rises from 3

question 120

Multiple Choice

If the growth rate of real GDP rises from 3% to 4% per year,then the number of years required to double real GDP will decrease from

• A)23.3 years to 17.5 years.
• B)28.0 years to 21.0 years.
• C)11.2 years to 10.8 years.
• D)23.3 years to 20.6 years.

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Definitions:

Direct Materials

Materials directly linked to the production of a certain product and incorporated into its cost.

Predetermined Overhead

An estimated rate used to allocate overhead costs to products or services based on expected activities and costs.

Direct Materials

Materials that can be directly linked to the production process and form a fundamental component of the final product.

Direct Labor-Hours

The cumulative hours that employees actively participating in manufacturing processes have worked.