In Econland Total Output Is $6 Billion, Population Equals 250,000

question 61

Multiple Choice

In Econland total output is $6 billion, population equals 250,000 people, and, of these, 200,000 are employed workers. Output per person in Econland equals _______ and average labor productivity equals ______.

• A) $30,000; $24,000
• B) $24,000; $30,000
• C) $24,000; $24,000
• D) $30,000; $30,000

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Definitions:

Rate Of Return

A measure used to evaluate the financial performance of an investment, calculating the gain or loss relative to the asset's initial cost.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows or the rate charged by central banks on loans to commercial banks.

Lump Sum

A single payment made at a particular time, as opposed to multiple payments made over time.

Insurance Settlement

The payment made by an insurance company to fulfill its obligation under an insurance policy.