Which of the Following Is a TRUE Statement Concerning Economic

question 150

Multiple Choice

Which of the following is a TRUE statement concerning economic growth?

• A) Changes in per capita nominal GDP are used to measure economic growth because population growth can distort the figures and we want to use the nominal amounts since that is what people identify with.
• B) Changes in per capita nominal GDP are used to measure economic growth, but there are serious problems concerning the desirability of using figures that do not account for pollution and urban sprawl.
• C) Changes in per capita real GDP are used to measure economic growth because this accurately measures all the differences in living standards across countries.
• D) Changes in per capita real GDP are used to measure economic growth because inflation and population growth can distort nominal GDP figures or total GDP figures.

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Definitions:

Research and Development

The systematic investigation and innovation aimed at the discovery and application of new knowledge, typically to create new products or improve existing ones.

Restraint of Trade

Legal term referring to any activity or agreement that restricts or impedes free competition in the market, often deemed unenforceable or illegal.

Horizontal

Describes a peer relationship in business or management settings, implicating equivalence rather than hierarchy.

Vertical

Describes the integration or arrangement within a supply chain where a company controls multiple stages of production or distribution, from raw materials to final product delivery.