Compared to the Level of Real GDP Per Person in 1870

question 22

Multiple Choice

Compared to the level of real GDP per person in 1870, by 2008, real GDP in the U.S was ______ times larger, while real GDP per person in Japan was _______.

• A) 13; smaller
• B) 13; 13 times larger
• C) 13; 31 times larger
• D) 31; 13 times larger

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Definitions:

Accumulated Depreciation

The cumulative amount of depreciation expense recorded for an asset from the time it was purchased and deployed for use.

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, representing the asset's consumption.

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction occurs.

Expenses Recorded

The process of documenting all the money spent during the operation of a business, used to track financial performance and for tax purposes.