The Rule of 70 Is Used to

question 31

Multiple Choice

The Rule of 70 is used to

• A)estimate how much of an economy's growth rate is attributable to increases in capital per hour of labour.
• B)calculate the standard of living.
• C)calculate the economy's growth rate.
• D)estimate how long it will take the level of any variable to double.
• E)estimate how much of an economy's growth rate is attributable to technological advance.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Intertemporal Price Discrimination

A pricing strategy where a seller changes prices over time for the same product or service to maximize profits by taking advantage of differences in consumers' willingness to pay at different times.

Marginal Cost

The growth in the overall expense incurred from producing an additional unit.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in decreased costs per unit.