In a Small Country, Using Prices of 2012, GDP in 2012

question 63

Multiple Choice

In a small country, using prices of 2012, GDP in 2012 was $100 and GDP in 2013 was $110. Using prices of 2013, GDP in 2012 was $200 and GDP in 2013 was $210. The country's BEA will calculate _{--------------------}Percent as the growth in real GDP between those years.

• A)5
• B)10
• C)15
• D)7.5
• E)None of the above answers is correct.

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Definitions:

Residual Distribution Policy

A dividend payment policy in which dividends are based on earnings minus all planned capital investments and working capital needs.

Capital Budget

The process and plan for determining and allocating financial resources for major investments or projects within a company.

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, often expressed as a percentage.

Dividend Policies

The policies and guidelines a company follows in deciding how much of its earnings it will pay out to shareholders as dividends.