EBK MACROECONOMICS (FOURTH EDITION)
4th Edition
ISBN: 9780393616125
Author: Jones
Publisher: YUZU
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Question
Chapter 1, Problem 3E
(a)
To determine
Determine the ratio of per capital income.
(b)
To determine
Explain which country has the faster average growth rate of per capita GDP.
(c)
To determine
Rank the countries in order of population.
(d)
To determine
Which is a large share of GDP in rich and poor countries.
(e)
To determine
Explain the exchange rate for several countries.
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Refer to the table below:
Year
1950
1960
1970
1980
1990
2000
2010
2020
Participation Rates
(Age 16 and Older)
Men
86.4
83.3
79.7
77.4
76.4
74.7
71.2
69.2
Women
33.9
37.7
43.3
51.5
57.5
60.0
58.6
57.4
(1) Use the data from the following table to calculate the GDP per capita of each country. The GDP per capita for Estonido and for Galicia in 2018 is
Country
Year
GDP (billions in U.S. $)
Population (millions)
Estonido
2017
525.50
73
Galicia
1,658.00
118.25
Estonido
2018
721.75
78
Galicia
1,724.30
121.8
(a) $925 for Estonido and $1,412 for Galicia in 2017.
(b) $9,253 for Estonido and $14,157 for Galicia in 2017.
(c) $7,199 for Estonido and $14,021 for Galicia in 2017.
(2) When calculating GDP as the sum total of all spending, which of the following should be included?
(a) government purchases of labor, goods, and services.
(b) government transfer payments.
(c) savings.
(3) For productivity to increase
(a) the total number of hours worked has to increase.
(b) the value of the production per hour worked has to increase.
(c) the total production or output has to increase.
The figure depicts the annual number of hours worked against GDP per capita in the
US, France, and the Netherlands between 1870 and 2000. Which of the following is
true? (OUP-U3-Q3-01)
Annual hours worked
3.500
1800
3,000 1900-191
2,500
2.000
1,500
L000
1870
1,000
1929
1929
1900 19501960
FRANCE 1938
6.000
1973
1973
11.000
1973
1980 1960
1990
1995
16,000
GOP per capita
1500
2000
2000
NETHERLANDS
21,000
US
21,000
2000
1) The graph proves that workers in the US produce higher outputs than their
counterparts in France or the Netherlands because they work longer hours.
2) US workers have always worked longer hours than French or Dutch workers
have.
3) The Great Depression in 1929 had the effect of reducing both hours worked
and output in both the US and France.
4)
As GDP per capita increases, the number of hours worked continues to fall in
all countries shown.
Chapter 1 Solutions
EBK MACROECONOMICS (FOURTH EDITION)
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