Which of the Following Is True

question 77

Multiple Choice

Which of the following is true?

• A)​The Rule of 70 says that the number of years necessary for a nation to double its output is approximately equal to the nation's growth rate divided by 70.
• B)​Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita.
• C)​An increase in labor input necessarily increases output per capita.
• D)​Neither the initial development process nor the sustained growth of an economy is dependent on a large natural resource base.

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Definitions:

Total Revenue

The total amount of money a company receives from its goods or services over a certain period of time.

Profit-Maximizing Output

The level of production at which a company can achieve the highest possible profit based on its cost structure and the market price of its products.

Economic Profit

Profit calculated by subtracting both explicit (direct) and implicit (indirect or opportunity) costs from total revenues.

Economic Profit

The profit a company makes after deducting both explicit (direct payments) and implicit (opportunity) costs.