If GDP Grows at a Rate of 3% Per Year

question 64

Multiple Choice

If GDP grows at a rate of 3% per year, approximately how long will it take for GDP to double in size?

• A)12 years
• B)21 years
• C)23 years
• D)35 years
• E)42 years

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Definitions:

Credit Sales

Sales made by a business where the customer purchases goods or services on credit and payment is received at a later date.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold.

Variable Manufacturing Overhead

Costs that vary with the level of production, such as utilities for manufacturing premises and wages for hourly production workers.

Finished Goods Inventory

Finished goods awaiting purchase that have not been sold to consumers yet.