​Which of the Following Is a Good Measure of Economic

question 524

Multiple Choice

​Which of the following is a good measure of economic prosperity?

• A)​The level of real GDP
• B)The growth rate of real GDP
• C)The level of nominal GDP
• D)The price level

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Definitions:

Margin Of Safety

The difference between actual or expected sales and sales at the break-even point, measured in either units or revenue.

Break-Even Point

The quantity of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.

Variable Expenses

Costs or expenses that vary in direct proportion to changes in business activity levels, such as sales volumes or production output.

Unit Variable Cost

The cost that varies directly with the production of one additional unit of a product.