Praxis II Citizenship

Category - Economics

By what factor is economic growth usually measured?
  1. Scarcity.
  2. Unemployment rate.
  3. Real gross domestic product per capita.
  4. Performance of product markets that are integral to the society (food, housing, fuel, etc.).
Explanation
Answer: C - Economic growth is usually measured by the real gross domestic product per capita, which is the total production of goods and services within a nation’s borders during one year (GDP), adjusted for inflation (real) and divided by the number of people in the nation (per capita). Economic growth and increases to the GDP require the same basic things: increased access to natural resources and/or increased productivity utilizing the available resources. If a nation yields more product (resulting in an increased GDP), its economy is likely growing. While the employment rate factors into a nation’s production and economic growth, growth is not measured by employment rates alone. Likewise, growth is not assessed by specific markets; all product markets are taken into account.
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