Last Year Country a Had a Nominal GDP of $600

question 15

Multiple Choice

Last year country A had a nominal GDP of $600 billion,a GDP deflator of 150 and a population of 40 million.Country B had a nominal GDP of $720 billion,a GDP deflator of 120 and a population of 50 million.From these numbers which country is likely to have had the higher standard of living?

• A)Country A because it had the higher nominal GDP per person.
• B)Country B because it had the higher nominal GDP per person.
• C)Country A because it had the higher real GDP per person.
• D)Country B because it had the higher real GDP per person.

Recognize the role of tax policy in achieving economic policy objectives.

Understand the implications of specific taxes, such as excise taxes, on market efficiency and public welfare.

Understand the concept of deadweight loss due to taxation and its calculation.

Grasp the effects of tax elasticity on demand and supply and the resultant deadweight losses.

---

Definitions:

Unit Product Cost

The total cost associated with producing one unit of a product, including direct materials, labor, and allocated overhead.

Unit Product Cost

The total cost to produce one unit of a product, comprising both direct costs like materials and labor, and allocated indirect costs.

Variable Costing

A bookkeeping procedure that adds only variable production fees (including direct materials, direct labor, and variable manufacturing overhead) into the costs associated with products.

Unit Product Cost

The total cost to produce a single unit of product, including direct materials, direct labor, and allocated overhead.