GDP Can Increase at a Faster Rate Than Real GDP

question 35

Multiple Choice

GDP can increase at a faster rate than real GDP

• A)only if there is a decline in the price level.
• B)only if the unemployment rate is increasing.
• C)only if the value of the dollar is stable.
• D)only if the population is growing.
• E)only if there is inflation.

Understand the concept of average total, variable, and fixed costs.

Calculate total variable and total costs based on average costs.

Recognize economies and diseconomies of scale in production.

Distinguish between explicit and implicit costs, including economic and accounting profits.

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Definitions:

Scientific Management

A management theory developed by Frederick W. Taylor in the late 19th and early 20th centuries that emphasizes optimizing and simplifying jobs for greater productivity by utilizing scientific methods to design tasks and workflow.

High Performance Work Systems

Organizational approaches designed to enhance employee effectiveness and productivity through improved work practices and technologies.

Employee Involvement

Programs and practices that encourage employees to contribute ideas and participate in decisions that affect their work and the organization.

Reengineering

The radical redesign of business processes to achieve dramatic improvements in productivity, cycle times, and quality.