If Real GDP Is $11,750 Billion and Aggregate Hours Are

question 17

Multiple Choice

If real GDP is $11,750 billion and aggregate hours are 175 billion, labor productivity equals

• A) $23.50 per hour.
• B) $52 per hour.
• C) $67 per hour.
• D) $235 per hour.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Health Insurance Costs

The expenses associated with medical policies that cover the cost of medical services for the insured.

Premium Per Person

The amount of money charged per individual for insurance coverage.

Volume Discounts

Price reductions offered to buyers purchasing in large quantities, used as an incentive to increase sales volume.