Real GDP Per Person in the Country of Flip Is

question 51

Multiple Choice

Real GDP per person in the country of Flip is $10,000, and the growth rate is 10 percent a year. Real GDP per person in the country of Flap is $20,000 and the growth rate is 5 percent a year. When will real GDP per person be greater in Flip than in Flap?

• A)in 2 years
• B)in 15 years
• C)never
• D)in 10 years
• E)in 7 years

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Definitions:

Current Ratio

An indicator assessing a corporation's capability to settle its obligations that are due in less than one year, focusing on short-term liquidity.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets.

Accounts Receivable Turnover

A financial metric that measures how frequently a company collects its average accounts receivable over a period, indicating the efficiency of credit policies.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects debt from its customers over a period.