Suppose the Real GDP in an Economy in the Year

question 47

Multiple Choice

Suppose the real GDP in an economy in the year 1999 was $2, 000 and the total population was 500.The economy experienced a 5% growth in real GDP and a 2% growth in its population in 2000.Calculate the change in per capita income of the economy during this period.

• A)+1%
• B)+2.5%
• C)-3%
• D)+3%
• E)-4%

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Definitions:

Leased Equipment

Assets obtained by a company through a leasing agreement, allowing the company to use the equipment without owning it.

Annuity Due

An annuity due is a type of annuity payment in which each installment is paid at the beginning of each period, rather than at the end, typically used in leases and loan repayments.

Capital Lease Obligation

A lease classified as a purchase agreement for accounting purposes, wherein the lessee records the leased asset as an owned asset on the balance sheet.

Capital Lease

A lease agreement that transfers substantially all the risks and rewards of ownership of the asset to the lessee, effectively treated as a purchase of the asset.