If Real GDP Was $14 Trillion Last Year and Is

question 5

Multiple Choice

If real GDP was $14 trillion last year and is $16 trillion this year, what is the growth rate?

• A)12.5 percent
• B)-12.5 percent
• C)14 percent
• D)$2 trillion
• E)47 percent

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the benefit received by consumers from participating in the market.

Utility

The satisfaction you derive from a good or service that you purchase. How much utility you derive is measured by how much you would be willing to pay.

Demand Schedule

A table or graph showing the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period.

Marginal Utility

The extra pleasure a customer receives from using an additional unit of a product or service.