Suppose That Average Productivity of Chinese Firms Increases More Rapidly

question 45

Multiple Choice

Suppose that average productivity of Chinese firms increases more rapidly than the average productivity of Australian firms, then:

• A)production costs in China fall, quantity demanded for Chinese products rises and the value of yuan falls against the dollar.
• B)production costs in China rise, quantity demanded for Chinese products falls and the value of yuan falls against the dollar.
• C)production costs in China fall, quantity demanded for Chinese products rises and the value of yuan rises against the dollar.
• D)production costs in China rise, quantity demanded for Chinese products rises and the value of yuan rises against the dollar.

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Definitions:

Real GDP

Real GDP refers to the total economic output of a country, adjusted for inflation, representing the value of all goods and services produced over a specified period.

Growth Rate

Growth rate measures the increase in value of a particular variable, such as the economy, a business, or an investment, within a specific time frame.

Annual

Pertaining to or occurring every year.

GDP Per Capita

The gross domestic product divided by the population, measuring the average economic output per person and often used as an indicator of living standards.