If a Country's Initial Real GDP Is $60,000 and Its

question 83

Multiple Choice

If a country's initial real GDP is $60,000 and its yearly growth rate of GDP is 5 percent, use the Rule of 70 to determine approximately how many years it would take for this economy to double its GDP.

• A) 20 years
• B) 14 years
• C) 70 years
• D) 12 years

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Definitions:

Break-Even Analysis

A financial calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing decisions or demand for the product.

Markup Pricing

A pricing strategy where a fixed percentage is added to the cost of a product to determine its selling price.

Price Sensitivity

The degree to which the price of a product affects consumers' purchasing behaviors, reflecting their responsiveness to price changes.