Which of the Following Variables Is Used to Measure Economic

question 21

Multiple Choice

Which of the following variables is used to measure economic growth?

• A) nominal GDP
• B) nominal GDP per capita
• C) real GDP
• D) real GDP per capita

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Definitions:

Net Present Value

The gap between the present worth of money coming in and going out over an established duration.

Pretax Return

The income or profit of a company before income tax expenses are deducted.

Net Present Value

The contrast in present value between incomes and expenditures of cash across a given time period.

Discount Factor(s)

A multiplier for determining the present value of future cash flows, reflecting the time value of money.