If Population Increases at an Average Rate of 1% Per

question 50

Multiple Choice

If population increases at an average rate of 1% per year and output increases at an average rate of 5% per year, then per capita real GDP will double in

• A) 14.4 years.
• B) 18 years.
• C) 24 years.
• D) 36 years.

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Definitions:

Break-Even Point

The point at which total costs and total revenue are equal, meaning no net gain or loss is incurred from production and sales.

Shutdown Point

The shutdown point is the level of production and price at which a company's revenue only covers its variable costs, and operating at any capacity below this point would cause the firm to incur losses.

Hourly Wages

The sum of money an employee receives for working one hour.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.