When Per Capita Real GDP Is Increasing, Real Output Is

question 24

Multiple Choice

When per capita real GDP is increasing, real output is growing

• A) more rapidly than prices.
• B) more rapidly than population.
• C) less rapidly than prices.
• D) less rapidly than population.

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Definitions:

Price of Capital

The cost of using capital assets, reflected in the interest rate or rate of return that investors demand for using their capital.

Total Product

The overall quantity of output that a firm produces, usually in a given period of time, measured in terms of units.

Average Product

The output per unit of input, calculated by dividing the total product by the quantity of input.

Average Product

The output per unit of input, calculated by dividing total output by the total number of units of input.