At a Growth Rate of 6% an Economy Will Double

question 89

Multiple Choice

At a growth rate of 6% an economy will double in size in:

• A) 7 years.
• B) 14 years.
• C) 12 years.
• D) 6 years.

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Definitions:

MB = MC Decision Framework

A decision-making principle where optimal allocation of resources is achieved when marginal benefit equals marginal cost.

Marginal Benefit Element

The heightened sense of satisfaction or value realized by a consumer upon acquiring another unit of a good or service.

Expected-Rate-of-Return-Curve

A graphical representation showing the range of possible outcomes for the return on an investment and their associated probabilities.

Law of Diminishing Returns

An economic principle stating that if one factor of production is increased while others are held constant, the overall return will eventually decrease after a certain point.