Which of the Following Statements About the Growth of Real

question 160

Multiple Choice

Which of the following statements about the growth of real GDP in the U.S.economy is correct?

• A)Real GDP grew on average about 4.5 percent per year between 1965 and 2004.
• B)The growth in real GDP measures the growth in the output of goods and services.
• C)The growth of real GDP has been steady over time.
• D)All of the above are correct.

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Definitions:

Economic Profit

Profit that accounts for both explicit costs and opportunity costs.

Economic Profit

The financial gain made in a transaction after subtracting both the explicit and implicit costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that change in proportion to the level of output or activity in a business.