Which of the following statements is correct?
A) GNP refers to the total value of all goods and services produced by a national economy.
B) GDP refers to the total value of all goods and services produced by a national economy regardless of where the factors of production are located.
C) Growth depends on output increasing at a faster rate than population.
D) Per capita GDP is calculated by dividing purchasing power parity by the rate of inflation.
E) Real GDP compares how much a system produces with the resources needed to produce it.

Question

Quizplus · Accepted Answer

Growth in an economy is indeed dependent on the output (goods and services produced) increasing at a faster rate than the population. This means that for an economy to grow, it must produce more per person over time.

Which of the Following Statements Is Correct