The Only Way the Standard of Living of the Average

question 4

Multiple Choice

The only way the standard of living of the average person in a country can increase is if ________ increases faster than ________.

• A)production; population
• B)population; GDP per capita
• C)population; production
• D)population; income

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Definitions:

Accounts Receivable

Receivables from customers for goods or services provided but not yet compensated.

Effective Annual Interest Rate

The interest rate on a loan or financial product restated from the nominal rate as an annual rate that reflects compounding over a given period.

Cash Cycle

The period of time it takes for a company to convert its investments in inventory and resources into cash flows from sales.

Receivables Period

The average number of days it takes for a company to collect payments from its customers.