If Real GDP in Year 1 Is $72 Million and Real

question 153

Multiple Choice

If real GDP in year 1 is $72 million and real GDP in year 2 is $87 million,then the growth rate of real GDP is

• A)15 percent.
• B)$15 million.
• C)20.8 percent.
• D)17 percent.
• E)83 percent.

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Definitions:

Total Variable Cost

The sum of all variable costs (costs that change with the level of output) associated with producing a specific amount of goods or services.

Sold Units

The total number of units of a product that have been sold during a specific time period.

Selling Price

The amount a seller charges for a product or service.

Contribution Margin

The amount by which the sales revenue of a product exceeds its variable costs, indicating the contribution towards fixed costs and profits.