In 2012, the Imaginary Nation of Platland Had a Population

question 156

Multiple Choice

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

• A)3% population growth and 4% real GDP growth
• B)3% population growth and 5% real GDP growth
• C)6% population growth and 4% real GDP growth
• D)6% population growth and 5% real GDP growth

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Definitions:

Average Variable Costs

Costs that change with the level of output, averaged over the total number of units produced.

Average Total Costs

The total of all production costs divided by the number of units produced, representing the per-unit cost of production.

Economic Depreciation

The decrease in an asset's value over time due to use, wear, or obsolescence.

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts and resources used for production.