Real GDP Per Capita, Growing at a Constant Rate Over

question 80

Multiple Choice

Real GDP per capita, growing at a constant rate over a 35-year period, has doubled at the end of that period. What must the annual growth rate of real GDP per capita be for this economy?

• A) 1%
• B) 2%
• C) 4%
• D) 15%

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Definitions:

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply of a good or service, and where entry of new competitors is obstructed.

Perfect Competitor

An idealized market structure characterized by a large number of small firms, each being a price taker, with no single firm able to influence the market price.

Long Run

A period in economics where all factors of production and costs are variable, allowing complete industry adjustment.

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service.