Suppose That in 1960 Japan Had an Initial Per Capita

question 78

Multiple Choice

Suppose that in 1960 Japan had an initial per capita GDP of $12,000 per year and China had a per capita GDP of $5,000. But China is growing at 5 percent per year and Japan is growing at 3 percent per year. ________ is richer in 2010 with a per capita GDP of approximately ________.

• A) Japan; $5,000
• B) Japan; $31,500
• C) China; $7,500
• D) China; $73,500
• E) Not enough information is given.

---

Definitions:

Revenues

The income that a business receives from its normal business activities, typically from the sale of goods and services to customers.

Costs

The total expenditures or the amount of resources used in the production of goods or services, including materials, labor, and overhead expenses.

Mass Customization

A production technique that allows for the customization of products to meet individual customer needs at mass production prices.

Price Discrimination

Charging different prices to different buyers for products of like grade and quality.