Is It Possible for a Country with a Relatively Large

question 9

Multiple Choice

Is it possible for a country with a relatively large GDP to have a relatively small per-capita GDP?

• A) Yes,since the country with a relatively large GDP could also have a relatively large population.
• B) No,since countries with a relatively large GDP (such as the United States and Japan)also have a relatively high per-capita GDP.
• C) Yes,but only under the condition that the country "produces" relatively more "bads" than other countries.
• D) Yes,since government transfer payments may be exorbitantly high in the country with the relatively high GDP.
• E) There is not enough information to answer this question.

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Definitions:

Marginal Revenue

The additional income earned by producing and selling one more unit of a product or service.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product, often used to decide the amount of production.

Profit Maximizing

A company's strategy aiming to achieve the highest possible profit given its products, market conditions, and operational costs.