The Variable Used by Economists as the Best Broad Indicator

question 53

Multiple Choice

The variable used by economists as the best broad indicator of a nation's standard of living is

• A)real GDP per person.
• B)real GDP.
• C)the capital-labor ratio.
• D)the capital-output ratio.
• E)multifactor productivity.

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Definitions:

Pre-tax Effect

The impact on financial results before the adjustment for taxes has been made.

Units

In accounting and financial reporting, it can refer to a measure of quantity, such as items sold or produced.

Perpetual Inventory System

An inventory management system that updates inventory records for each purchase and sale in real-time.

Gross Method

An accounting practice where purchases are recorded at their gross price without deducting any cash discounts.