Case: Suppose you are watching a news report with a friend. The news report points out that a certain African nation generates a GDP per capita of only $1300 per year. Since your friend knows that Slovenia’s GDP per capita is approximately $26 000, he suggests that Slovenians are materially 20 times better off than the people of the African nation

Case: Suppose you are watching a news report with a friend. The news report points out that a certain African nation generates a GDP per capita of only $1300 per year. Since your friend knows that Slovenia’s GDP per capita is approximately $26 000, he suggests that Slovenians are materially 20 times better off than the people of the African nation

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 32P: In 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million....

See similar textbooks

Similar questions

1. If real GDP per capita in the United States is $10,000, what will real GDP per capita in the United States be after five years if real GDP per capita grows at an annual rate of 2.9% ? (Show your work and explain your answers.) 2. Chile has a population of 19.5 million and a GDP of $253 billion. Denmark has a population of 6.25 million and a GDP of $327 billion. Which country has a higher standard of living, and why? How did you determine who has the better living standard? (Reference any academic and non-academic articles used to make this determination.) 3. Movement between which points in the following diagram would reflect only a technology change? Movement between which points in the following diagram would reflect only an increase in the available capital per worker? if a country is already fairly wealthy, what should it concentrate more on: increasing capital per worker or encouraging positive technological change? Why? (Explain each answer, do not just list letters.)
10) True or False: Countries that currently have low real GDPs per capita are destined to always have lower living standards than countries that currently have high real GDPs per capita.
Suppose a country's real GDP is $18 trillion and the population is 400 million. Instructions: Enter your answers as a whole number. a. What is this country's real GDP per capita? b. Suppose that during the next 10 years, real GDP doubles and the population triples. At the end of this 10-year period, what will be its real GDP per capita? 2$
Suppose a country's real GDP is $14 trillion and the population is 200 million. Instructions: Enter your answers as a whole number. a. What is this country's real GDP per capita? b. Suppose that during the next 10 years, real GDP increases by 50 percent and the population triples. At the end of this 10-year period, what will be its real GDP per capita? 2$
2. a. Calculate the growth rate of economy for the year 2019 (one digit after point is sufficient in the calculation [for example 40.1%]) 2. b. If the population of the country is constant and equals to 200 people, calculate GDP per capita for the year 2018 and 2019. 2 c. An increase in GDP per capita number, does necessarily show welfare increases in the majority of the people who lives in the country? Explain. Country Name Year Exports Consumption Investment Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721
Real GDP in Country Z is growing at 5 per cent and its population is growing at 2 per cent. In Country L, real GDP is growing at 4 per cent and its population is growing at 0.5 per cent. Thus, Select one:- a. real GDP per person in Country L is growing at a faster rate than in Country Z. b. real GDP per person in Country L is growing at a rate that is not comparable to that in Country Z. c. real GDP per person in Country L is growing at the same rate as in Country Z. d. real GDP per person in Country Z is growing at a faster rate than in Country L.
1. In the last century, Tunisia's Gross Domestic Product (GDP) has grown rapidly on average 5% per annum. However, due to political, economic and geopolitical unrest faced, the economic situation of the country has been affected since 2009. GDP per capita in 2009 was USD4130. While in 2017, GDP per Tunisian per capita is USD3491. Calculate the answer to the following question: a) In a situation that remains the same, how many years will Tunisia be able to doubling the per capita GDP that was achieved in 2009? b) If Tunisia continues to enjoy growth at a rate of 5% a year since 2009, what is the per capita income in 2018? c) Compared to Tunisia, Malaysia's GDP per capita is USD9945 for 2017. What is the average growth rate that Tunisia should maintain since in 2009, if the country wants to achieve a GDP per capita in line with Malaysia? ●
The table provides some data on real GDP and the population of Iberia in 2019 and 2020 If the growth rates of 2020 are maintained in future years, when will real GDP per person in Iberia double? If the growth rates of 2020 are maintained in future years, real GDP per person in t Iberia will A. double by 2055 B. double after 70 years C. double by 2090 D. never double unless the population stops growing Year 2019 2020 Real GDP (billions of pesos) 180,000 185,436 Population (billions) 300 303
(6) GDP grows at 4 percent per year in Afghanistan and at 2 percent per year in Iraq. In 2016, GDP in Afghanistan was half as large as GDP in Irac, that is, YA2016/YIraq2016= 0.5. When will Afghanistan catch up with Iraq?
5. Nation A's real GDP was $520 billion in 2009 and $550 billion in 2010. Its population was 150 million in 2009 and 155 million in 2010. On the other hand, Nation B's real GDP was $200 billion in 2009 and $210 billion in 2010; and its population was 53 million in 2009 and 55 million in 2010. Which nation has a higher Real GDP per capita?
Explain why GDP per capita comparison among nations are not a perfect measure of differences in economic well-being. (Hint: there are four problems with using GDP per capita to compare rich versus poor countries)
4. (This is problem 7, page 239 of the textbook.) An economy has a per-capita production function y = Akªh¹-a, where A and a are fixed parameters, y is per- worker output, k is the capital-labor ratio, and h is human capital per worker, a measure of the skills and training of the average worker. The production function implies that, for a given capital-labor ratio, increases in average human capital raise output per worker. The economy's saving rate is s, and all saving is used to create physical capital, which depreciates at rate d. Workers acquire skills on the job by working with capital; the more capital with which they have to work, the more skills they acquire. We capture this idea by assuming that human capital per worker is always proportional to the amount of physical capital per worker, or h = Bk, where B is a fixed parameter. Find the long-run growth rates of physical capital, human capital, and output in this economy.