Suppose That in 2016,real GDP Grew in Estonia by 3

question 153

Multiple Choice

Suppose that in 2016,real GDP grew in Estonia by 3% and the population increased by 5%.Therefore,in 2016,Estonia experienced

• A)economic growth,but not an increase in living standards.
• B)economic growth and an increase in living standards.
• C)no economic growth,but an increase in living standards.
• D)no economic growth and no increase in living standards.

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Definitions:

Variable Expenses

Costs that change in proportion to the level of business activity or production volume.

Fixed Expenses

Fixed expenses are costs that do not change in the short term regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Margin Of Safety

The excess of budgeted (or actual) dollar sales over the break-even dollar sales.

Variable Expenses

Expenses that fluctuate based on the level of a company's operations.