Which of the Following Statements Is NOT True About Using

question 78

Multiple Choice

Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?

• A) The definition does not indicate how the increase in growth is being disturbed among the nation's population.
• B) The definition assumes that some of the increase in productivity goes to the poor.
• C) The definition has understated actual economic growth because it does not take into consideration changes in leisure.
• D) The definition is not perfect for measuring increases in a nation's productive capacity.

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Definitions:

Opportunity Costs

The cost of an alternative that must be foregone to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Make Total Cost

An approach to calculate the comprehensive cost of manufacturing a product, including raw materials, labor, and overheads.

Buy Total Cost

The total expense incurred to purchase an item or service, including the purchase price and any additional fees or expenses.

Variable Expenses

Costs that vary in total in direct proportion to changes in business activity levels or volumes, such as sales commissions or raw material costs.