The following table shows real GDP per capita for the United States, South Korea, and Chad between 1970 and 2000. All figures are in 1998 U.S. dollars. (image inserted) The (decade-long) economic growth rate for the United States is shown in the second column. For example, from 1970 to 1980, the United States GDP grew from $18,395 to $22,666, an increase of ($22,666−$18,395)/($18,395)=23%. Use this method to fill in the growth rates for South Korea and Chad in the previous table. Enter the growth rates to the nearest whole percentage point. Compare the data for the United States and South Korea between 1970 and 1980. During this period, (South Korea OR The United States) had a higher level of real GDP per capita, while (South Korea OR The United States) experienced a higher growth rate in real GDP per capita. Convergence theory predicts that poor countries will grow more quickly than rich countries. Which one of the following is a reason for this?Rich countries devote a large fraction of their GDP to helping poor countries.Poor countries tend to have higher birth rates than rich countries.Copying existing technologies is less expensive than developing them independently. Those who don’t believe in the theory of convergence point to countries such as (South Korea OR The United States OR Chad). Which of the following statements can explain why the theory of convergence may not always hold? Check all that apply.Convergence theory applies only to small countries.Many poor countries do not have the necessary infrastructure for adopting and adapting advanced technologies.Rich countries actively try to keep poor countries poor through economic and military policies. The growth experience of South Korea illustrates that relatively poor countries can (always be much poorer than OR grow more quickly than OR be invaded by OR grow more slowly than) rich countries. Year Real GDP per Capita Growth Rate$18,395$22,666$28,435$34,77019701980United States1990200023%25%22%South KoreaReal GDP per Capita Growth Rate$1,886$3,262$6,615$10,807Source: Organisation for Economic Cooperation and Development (OECD)%%%ChadReal GDP per Capita$228$150$188$167Growth Rate%%%

For people everywhere to enjoy greater levels of living, economic progress is a must. It is a…

Answered: The following table shows real GDP per…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table shows real GDP per capita for the United States, South Korea, and Chad between 1970 and 2000. All figures are in 1998 U.S. dollars.

(image inserted)

The (decade-long) economic growth rate for the United States is shown in the second column. For example, from 1970 to 1980, the United States GDP grew from $18,395 to $22,666, an increase of ($22,666−$18,395)/($18,395)=23%.

Use this method to fill in the growth rates for South Korea and Chad in the previous table. Enter the growth rates to the nearest whole percentage point.

Compare the data for the United States and South Korea between 1970 and 1980. During this period, (South Korea OR The United States) had a higher level of real GDP per capita, while (South Korea OR The United States) experienced a higher growth rate in real GDP per capita.

Convergence theory predicts that poor countries will grow more quickly than rich countries. Which one of the following is a reason for this?

Rich countries devote a large fraction of their GDP to helping poor countries.
Poor countries tend to have higher birth rates than rich countries.
Copying existing technologies is less expensive than developing them independently.

Those who don’t believe in the theory of convergence point to countries such as (South Korea OR The United States OR Chad). Which of the following statements can explain why the theory of convergence may not always hold? Check all that apply.

Convergence theory applies only to small countries.
Many poor countries do not have the necessary infrastructure for adopting and adapting advanced technologies.
Rich countries actively try to keep poor countries poor through economic and military policies.

The growth experience of South Korea illustrates that relatively poor countries can (always be much poorer than OR grow more quickly than OR be invaded by OR grow more slowly than) rich countries.

Year Real GDP per Capita Growth Rate
$18,395
$22,666
$28,435
$34,770
1970
1980
United States
1990
2000
23%
25%
22%
South Korea
Real GDP per Capita Growth Rate
$1,886
$3,262
$6,615
$10,807
Source: Organisation for Economic Cooperation and Development (OECD)
%
%
%
Chad
Real GDP per Capita
$228
$150
$188
$167
Growth Rate
%
%
%

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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