Last Year Panglossia Had Real GDP of 27

question 46

Multiple Choice

Last year Panglossia had real GDP of 27.0 billion. This year it had real GDP of 31.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

• A)The population decreased from 88 million to 84 million.
• B)The population decreased from 75 million to 73 million.
• C)The population increased from 45 million to 50 million.
• D)The population increased from 60 million to 62 million.

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Definitions:

Capital Lease

A lease agreement that has the characteristics of a purchase agreement, where the lessee assumes most of the risks and rewards of ownership.

Executory Costs

Refers to the expenses incurred in executing a contract, often related to leasing agreements, such as insurance, maintenance, and property taxes.

Operating Expenses

Costs associated with the day-to-day functions of a business, not including the cost of goods sold but typically covering administrative, sales, and general expenses.

GAAP

Generally Accepted Accounting Principles; a framework of accounting standards, rules, and procedures defined by the professional accounting industry in a specific country.