Which of the Following Statements Is Correct

question 79

Multiple Choice

Which of the following statements is correct?

• A) Nominal GDP is always larger than real GDP.
• B) Nominal GDP can only rise from one year to the next because of price increases.
• C) Nominal GDP can rise from one year to the next because of price increases or because the country actually produces more, or both.
• D) All of the answers are correct.

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Definitions:

Sales Mix

Sales mix refers to the proportion of different products or services that a company sells, significantly impacting its overall profitability.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much revenue contributes to fixed costs and profits.

Fixed Costs

Costs that remain constant in total regardless of changes in the level of activity or volume of production, such as rent, salaries, and insurance.