Country a Has a GDP of $200,000 and a Population

question 90

Multiple Choice

Country A has a GDP of $200,000 and a population of 1,000.Country B has a GDP of $400,000 and a population of 4,000.Which of the following is true?

• A) The value of output is higher in country A.
• B) The value of income is higher in country A.
• C) The value of GDP per capita is higher in country A.
• D) The value of GDP per capita is higher in country B.
• E) The average living standard is higher in country B.

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Definitions:

Machine-Hours

The total hours that machinery is operated during a specific period for production purposes.

Departmental Predetermined Overhead Rates

These rates are calculated to allocate manufacturing overhead costs to specific departments, based on estimated or actual overhead and activity levels.

Machine-Hours

A measure of production time using machinery; used as a basis for allocating manufacturing overhead costs to products.

Machine-Hours

A measure of the total time that machines are operating during a specific period.