Using the "Rule of 72" Approximately How Long Will It

question 32

Multiple Choice

Using the "rule of 72" approximately how long will it take for productivity to double with a constant productivity growth rate of 1.5 percent per year?

• A) 18 years.
• B) 48 years.
• C) 72 years.
• D) 108 years.

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Definitions:

Output

The quantity of goods or services produced by a firm or economy.

Total Revenue Curve

A graphical representation that shows how total revenue changes as the quantity sold of a good or service changes, holding all other factors constant.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of output.

Price Elasticity

A gauge for assessing how changes in price affect the supply or demand volumes of a product.