A Chinese restaurant buys 100 cups of rice for a total of $10; they buy soy, fis

Question

A Chinese restaurant buys 100 cups of rice for a total of $10; they buy soy, fish and oyster sauces for a total of $20; they buy assorted vegetables for $40. They create 50 meals with these ingredients and sell each one for $5. How much does this process contribute to GDP? $70 $180 $250 $200 A country aims to double real GDP per capita in the next 10 years. This means that on average real GDP per capita must grow at ____ per year

. 2%

4%

7%

10%

A country aims to double real GDP per capita in the next 10 years. If the rate of population growth in the country is 1% per year then this means that real GDP must grow at ____ per year.

5%

8%

11%

3%

A country wants its real GDP per capita to grow at a rate of 2.5% per year. If the rate of population growth in the country is 1% per year and the inflation rate is 2% per year then this means that nominal GDP must grow at ____ per year.

5.5%

2.5%

4.5%

3.5%

Explanation / Answer

1) The correct answer is $ 250

Calculation = $ 5 X 50

GDP = $ 250

2) The correct answer is 7%

Calculation : -

10 = 70 / r

r = 70/10

r = 7%

3) The correct answer is 8%

Growth rate of real GDP per capita = G -1

10 = 70 / G - 1

10G - 10= 70

10G = 80

g = 8%

4) The correct answer is 4.5%

real GDP per capita growth rate = nominal GDP growth rate - Inflatation rate

2.5% = n - 2%

nominal GDP growth rate = 4.5%

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