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Suppose That Real GDP in a Country Is 10 Trillion

question 25

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Suppose that real GDP in a country is 10 trillion in the year 2005. With a growth rate of 2.5 perc e n t , wh at will be the per- c apita GDP in the year 2010?


Definitions:

Diseconomies of Scale

An economic concept where increasing production results in higher per unit costs.

Long-run Average Total Cost

The average cost per unit of output over the long term, where all inputs are considered variable, allowing firms to adjust all factors of production.

Plant Sizes

The physical capacity or scale of a manufacturing facility, which can influence production volume, efficiency, and cost.

Per-unit Cost

The cost associated with producing or acquiring one unit of a product.

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