If the Working-Age Population in an Economy Shrinks, Real GDP

question 89

Multiple Choice

If the working-age population in an economy shrinks, real GDP can still grow if:

• A) Work hours per week decreases, to spread work among more workers
• B) Labor productivity increases rapidly enough
• C) Consumption by households increase rapidly
• D) Spending by firms and the government increases

Analyze the impact of market price on a firm's economic profit, loss, and break-even conditions.

Evaluate the implications of different levels of output on a firm's profitability using concepts like total revenue and total cost.

Comprehend the role and minimum points of average total cost (ATC) and average variable cost (AVC) curves in a firm's production decisions.

Identify the condition under which a firm should continue to operate or shut down in the short run based on price and cost analysis.

---

Definitions:

Small Companies

Businesses with a comparatively limited scale of operations, resources, or revenues, often defined within specific legal or industry frameworks.

Accounts Receivable

The amount customers have yet to pay a company for products or services that have already been provided or utilized.

Notes Receivable

A customer’s written promise to pay an amount and possibly interest at an agreed-upon rate; amounts that customers owe for which a formal, written instrument of credit has been issued.

Direct Write-Off Method

A method of accounting for bad debts that involves charging unpaid accounts directly to the expense account when they are determined to be uncollectible.