A Convenient Rule of Thumb Called the "Rule of 72

question 8

Multiple Choice

A convenient rule of thumb called the "rule of 72" states that a quantity growing at x percent per year doubles in size approximately every (72/x) years.
-Refer to the information above.An economy's real GDP per person doubles every 18 years when it maintains a growth rate of ________ per year.

• A)5.6 percent
• B)4.0 percent
• C)0.25 percent
• D)0.9 percent

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Definitions:

Rational Acts

Actions or decisions that are made based on logical reasoning and coherent analysis, aiming at maximizing benefits while minimizing costs and risks.

Voice of the People

A term used to describe the opinions, wishes, or preferences of the general public or a particular segment of society.

Basis of Economy

The foundational elements or activities that support and drive the economic systems, such as production, consumption, and trade.

Self-governing

The capability of an organization or entity to regulate itself without external intervention.