If a Country's Population Increases at a Slower Rate Than

question 74

Multiple Choice

If a country's population increases at a slower rate than the growth rate of its real GDP

• A) GDP per capita has increased.
• B) the standard of living in the country has decreased.
• C) average output per person has decreased.
• D) the country's rate of inflation has decreased.

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Definitions:

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences and in a way that maximizes social welfare.

Marginal Cost

The uptick in cost associated with producing an extra unit of a product or service.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a benefit to consumers exactly equal to the cost of producing it.

Product Mix

The total range of products that a company offers for sale, encompassing different lines, variations, and services to meet consumer needs.