If Real GDP Per Capita in a Country Was $14,000

question 54

Multiple Choice

If real GDP per capita in a country was $14,000 in year 1 and $14,140 in year 2,then the economic growth rate for this country from year 1 to year 2 was:

• A) 1%.
• B) 2%.
• C) 3%.
• D) 4%.

---

Definitions:

Overapplied Amount

This is an accounting term referring to a situation where the actual manufacturing overhead cost is less than the overhead cost applied to production, resulting in a surplus.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, indirect labor, and materials not directly traceable to a product.

Machine Hours

A measure of the amount of time a machine is operated within a given period, used in cost accounting to allocate manufacturing overhead costs to products.

Overapplied Amount

A situation in cost accounting where the allocated factory overhead costs exceed the actual overhead costs incurred.