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Real GDP and Real GDP Per Capita Are Two Indicators

question 95

Essay

Real GDP and real GDP per capita are two indicators used by the government to measure economic growth.Define them,and explain why growth of per capita real output is a more accurate measurement of economic growth.


Definitions:

Gross Cost

The prime cost and all charges paid by the principal.

Commission

A payment made to an employee or agent based on the value of the sale completed, often a percentage of the sale amount.

Principals

The original amount of money invested or loaned, not including interest or earnings.

Net Proceeds

The amount sent to the consignor as a result of consignment sales; gross proceeds minus charges.

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