Use the Data on U

question 118

Essay

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.
$$\begin{array} { | l | l | l | } \hline \text { Year } & \text { Real GDP (2009 prices) } & \text { Population } \\\hline 1993 & \$ 9,510,800 \text { million } & 257.8 \text { million } \\\hline 2012 & \$ 15,470,700 \text { million } & 313.85 \text { million } \\\hline\end{array}$$

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Definitions:

Prime Costs

The total cost of direct materials and direct labor incurred in the production of goods.

Conversion Costs

The combination of labor costs and overhead costs that are incurred to convert raw materials into finished goods.

Direct Labor Cost

The total cost of wages paid to workers directly involved in the production of goods or services, excluding benefits and overtime.

Manufacturing Process

The series of operations involved in the production of goods, encompassing everything from raw materials to finished product stages.