If You Knew That Two Countries Had the Same Level

question 86

Multiple Choice

If you knew that two countries had the same level of real GDP per person, what additional piece of information would help you determine in which country people had a better standard of living?

• A)The total physical volume of output for each country
• B)The population of each country
• C)The average number of hours worked per week in each country
• D)The average level of prices in each country

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Definitions:

Output

The total amount of goods and services produced by an economy or a production process.

Guns And Butter

A term used in economics to represent the trade-off between a nation's investment in defense and civilian goods.

Increasing Opportunity Cost

A situation where producing more of one good or service leads to a larger increase in foregone production of another good or service.

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time, typically measured as the percent rate of increase in real GDP.