Assume a DVC Has a Real Per Capita Output of $1,000

question 58

Multiple Choice

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real
Per capita output gap will

• A) remain unchanged at $19,000.
• B) increase by $760.
• C) decrease by $1,000.
• D) increase by $19,760.

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Definitions:

Economic Resources

Inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Consumption Goods

Goods that are used by consumers for personal use and satisfaction, not for production or investment.

Lollipops

A hard candy on a stick.

Candy Bars

Small confectionery items often consisting of chocolate and various fillings or toppings.