If Real GDP Is Increasing More Rapidly Than Population

question 101

Multiple Choice

If real GDP is increasing more rapidly than population,

• A) population must be declining.
• B) the country will have to export more than it imports.
• C) the general level of prices must be increasing.
• D) per capita real GDP will be increasing.

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Definitions:

Price

The amount of money required to purchase a good or service, determined by various factors including supply, demand, cost of production, and market conditions.

Utility Function

A representation in economic theory of how a consumer ranks different bundles of goods based on the level of satisfaction (utility) they provide.

Income

Money that an individual or business receives in exchange for providing a good or service or through investing capital.

Price

The cost or value assigned to a product or service, determining what a buyer must pay to acquire it.