Why is per capita
O Location and land mass have a large effect on GDP and must be considered in assessing a country's economy.
O Because per capita GDP takes population into account, it is more useful for comparing the standard of living in different countries.
O Per capita GDP provides information on income, while GDP only provides information on investment.
O Per capita GDP includes the value of land, minerals, and crops not counted by normal GDP.
The advantages of the sole proprietorship include
O ease of start-up
© full control ob business decisions
© exclusive rights to profits
© all of the above
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- 1 An increase in Real GDP: a. is absolute economic growth b. C. always results in a higher standard of living Both of the above O d. Neither of the abovearrow_forwardA country faces diminishing marginal returns when increasing it's capital stock. If this country added 1,000 units of capital last year and saw their GDP rise by $500 per person, what would you expect to happen if they had added 2,000 units of capital instead? O GDP would increase by another $500 per person O GDP would increase by less than another $500 per person O GDP would increase by more than another $500 per person O It is impossible to tell what would happen What is a potential downside of using patents to promote the creation of new technology? Without a market test, patents might be given to technology which ends up being useless. O Government money may be directed towards unproductive goals. It slows the spread and development of those ideas by restricting competition. They prohibit competition forever. What is the law of diminishing marginal returns?arrow_forwardBriefly describe the changes in relative income levels revealed by the table above. By 1700, which countries had higher GDP levels per capita? How has it changed since then? How has the gap in GDP per capita between countries changed? 2. How do Engerman and Sokoloff explain the reason for this change in relative income?arrow_forward
- Which of the following is true about classifying countries as low income, middle income, or high income? O There is no criteria for classifying economies as low income, middle income, or high income O Countries with unemployment rates above 5% are classified as low income Low income countries have $1,025 per capita GDP per year or lower O High income countries have $15,625 GDP per capita GDP per year or higherarrow_forwardPlease no written by hand The standard of living (per capita Real GDP) in the U.S.: a. increased in every decade from 1930 to 2010 except the 1930s and 1970s b. almost doubled between 1930 and 2010 c. Both of the above d. Neither of the above The standard of living (per capita Real GDP) in the U.S.: a. increased in every decade from 1930 to 2010 except the 1930s and 1970s b. almost doubled between 1930 and 2010 c. Both of the above d. Neither of the abovearrow_forward5. 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?arrow_forward
- 1..arrow_forward7. Which of the following is a measure of output share an average person will get if the total output of an economy divides evenly among the total population? a.Real GDP b.Per capita GDP c.The capital stock of the economy d.The economic growth of the economyarrow_forwardQUESTION 7 The following table shows GDP per capita in the UK and China, measured in US dollars. Year U.K. 2016 41194 2017 40407 2018 43114 2019 42379 China 8120 8823 9920 10522 What can you safely conclude from these data? O a. The UK economy is larger than the Chinese economy O b. The Chinese economy is growing continuously O c. There is less income inequality in the UK than in China O d. Quality of life is higher in the UK than in Chinaarrow_forward
- 2 Short questions 1. Give an advantage and a disadvantage of using real GDP per capita (PPP) as a measure of wel- fare. Explain if the disadvantage you identified means the GDP in PPP over or underestimates welfare. 2. In 2021, India's GDP per capita was USD 2256, and 7248 in PPP dollars. For the same year, Brazil's GDP per capita was USD 7507 and 16031 in PPP dollars. Which country has the higher price index? According to the Balassa Samuelson hypothesis, which country has the higher relative productivity of tradable? 3. In the theoretical Malthusian model, the law of motion of population is given by Lt+1 = nt Lt. However, we use the equation Lt+1 = 2 (AX) (L₁)¹-a to solve the model. Explain how the two equations relate, and why we can't use the first one to solve for the evolution of population directly. 4. Suppose the utility function of parents is given by u(c, n, h) = (1 −y) lnc + y(ln n + ß lnh), where c is consumption, n is number of children, and h is their human capital. As in…arrow_forward7) Assume that a tire company sells 4 tires to an automobile company for $400, anothercompany sells a compact disc player for $500, and the automobile company puts all of theseitems in or on a car that it sells for $20,000. In this case, how much GDP has been generated?a. $20,000.b. $20,000 less the automobile company’s profit on the car.c. $20,900.d. $20,900 less the profits of all three companies on the items that they sold.arrow_forward7arrow_forward
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