If an Economy's Population Grows at 3 Percent and Real

question 8

Multiple Choice

If an economy's population grows at 3 percent and real GDP grows at 3 percent, then:

• A) per capita real GDP is declining.
• B) the economy's standard of living is increasing.
• C) per capita real GDP is negative.
• D) per capita real GDP is constant.
• E) the economy is experiencing unemployment.

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Definitions:

Resources Employed

Refers to the allocation and utilization of resources such as labor, capital, and materials to produce goods and services.

Output of Industry

The total amount of goods and services produced by an industry or sector within a specific period, often used to gauge economic health and productivity.

Economic Profit

The difference between total revenues and total costs, taking both explicit and implicit costs into account, indicating the additional income over the opportunity cost of capital.

Industry Z

An unspecified sector of the economy, used as a placeholder to discuss economic concepts without specifying an industry.