Which of the Following Is a True Statement Concerning Economic

question 222

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:

Price-Elastic

Price-elastic refers to the responsiveness of the quantity demanded or supplied of a good to a change in its price; high elasticity means quantity changes significantly with price changes.

Amtrak Train Service

A government-owned corporation that provides intercity passenger train service in the United States.

Other Passengers

Individuals sharing a transport service such as a bus, plane, or carpool, not including the service provider or driver.

Elastic Demand

Describes a market situation in which the quantity demanded of a good or service significantly changes in response to a change in price.