-Refer to the Above Table

question 171

Multiple Choice

-Refer to the above table. If an economy's current per capita real GDP is $3,000, and if its economy grows at an constant annual rate of 5 percent for 50 years, what will be its per capita real GDP at the end of that period?

• A) $13,140
• B) $21,330
• C) $34,500
• D) $55,200

---

Definitions:

Stockholders' Equity

The equity held by shareholders in a company, determined by subtracting total liabilities from total assets.

Double Taxation

The taxation of the same income or financial transaction at two different levels, such as corporate profits and then again as dividends to shareholders.

Corporation

A corporation is a legal entity that is separate and distinct from its owners, offering limited liability protection to its shareholders, and is capable of owning property, entering into contracts, and being taxed.

Income Taxes

Taxes imposed by the government on the income earned by individuals and corporations.