Scenario: the Price of a Standard Basket of Goods in Country

question 118

Multiple Choice

Scenario: The price of a standard basket of goods in Country A is 10 pesos. The price of the same basket of goods in country B is 25 francs and $5 in the United States. Country A has an income per capita of 60,000 pesos, and country B has an income per capita of 100,000 francs. Assume full employment in both countries.
-Refer to the scenario above.Assume Country A initially has a population of 10,000 people.If its population grows by 50 percent but its GDP remains constant,how will the standard of living change in Country B?

• A) GDP per capita remains constant.
• B) GDP per capita decreases by 33 percent.
• C) GDP per capita decreases by 50 percent.
• D) GDP per capita increases by 33 percent.

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Definitions:

Strict Conformity

The rigorous adherence to established rules, norms, or standards within a group or society.

Total Quality Management

Managing with an organization-wide commitment to continuous improvement, product quality, and customer needs.

Quality Issues

Concerns related to the standards of products or services, indicating defects or limitations in meeting specified criteria.

Larger Organization

Refers to a business or entity that operates on a significant scale, having extensive reach, resources, personnel, and complexity.