The Relationship Between GDP and Market Capitalization for the Leading

question 57

Multiple Choice

The relationship between GDP and market capitalization for the leading economies of the world is generally ________.

• A)weakly related
• B)inversely related
• C)negatively correlated
• D)positively correlated
• E)unrelated

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Definitions:

Average Product

The amount of output produced on average by each unit of a variable input, such as labor, in the production process.

Marginal Product

is the additional output resulting from a one-unit increase in the quantity of one input while holding other inputs constant, illustrating the concept of diminishing returns.

Last Dollar Spent

The concept of allocating resources until the marginal utility of expenditure on each good or service is equal, maximizing utility.

Labor Productivity

A measure of the amount of goods and services produced by one hour of labor.