-Refer to the Above Table

question 249

Multiple Choice

-Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year. After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?

• A) B is 8 times larger, or $175,000 larger on a real per capita basis.
• B) B is 12 times larger, or $230,000 larger on a real per capita basis.
• C) B is a little over 6 times larger, or almost $60,000 larger on a real per capita basis.
• D) B is a little less than 2 times smaller, or almost $20,000 smaller on a real per capita basis.

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Definitions:

Product Mix

The variety of products a company offers to its customers, encompassing breadth, depth, and diversity of the product lines.

Linear Cost Behaviour

A cost behavior where costs change in direct proportion to changes in volume of activity.

Break-Even Sales Units

The number of units that must be sold to cover all fixed and variable costs, resulting in zero net profit or loss.

Product Mix

The range of different products or services offered by a company.