If the Population of a Nation Expands at a Faster

question 13

Multiple Choice

If the population of a nation expands at a faster rate than its rate of growth of real output, then _____.

• A)real output per capita would increase
• B)real output per capita would decrease
• C)the production possibilities curve of the nation will shift inward
• D)there will be a downward movement along the production possibilities curve of the nation
• E)Incorrect. Real output per capita = real output/population. See 12-1: Economic Growth

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Definitions:

Traceable Costs

Costs that can be directly associated with a specific cost object, such as a product, department, or project.

Period Costs

Costs that are expensed in the period in which they are incurred, rather than being capitalized.

Reportable Segment

A component of a business that earns revenues and incurs expenses, and for which separate financial information is available and regularly reviewed by the entity's chief operating decision-maker in deciding how to allocate resources and assess performance.

Operating Segment

A component of a business that engages in business activities from which it may earn revenues and incur expenses, and for which discrete financial information is available.