Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506756
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 14CQ
To determine
Describe the response of an economist based on rapid growth and high income levels.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Billions of people in the world make two dollars a day or less. In fact, a billion people make less than one dollar a day. In such places, a loan of $100 or $200 makes a huge difference. That's where microloans from organizations such as Opportunity International come in. Opportunity International is an organization that grants microloans to people, mostly women, in developing countries so they can invest in a business. Those investments often lead to community growth and employment, and help the owners, themselves, to prosper on a moderate scale. The borrowers must pay back the money with interest—when they do, they can borrow more and keep growing.
Opportunity International, unlike some other microlending organizations, also provides a banking function where entrepreneurs can safely put their money. They can also buy some insurance to protect themselves against loss. Opportunity International helps over a million people in over 28 countries, giving them the opportunity to change…
Identify THREE public policies that can stimulate employment and facilitate economic growth in an economy.
Differentiate between Economic growth and Economic development
Chapter 16 Solutions
Macroeconomics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- Do you expect that China, then India, will follow the growth paths of Japan and South Kora? What factors are similar across the countries, and what is unique about each of these four? Discuss with your peers.arrow_forwardSuppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign investment in the United States. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply. Providing tax breaks and patents for firms that pursue research envelopment in health and sciences. Protecting property rights and enforce contracts. Increasing taxes on income from savings Imposing restrictions on foreign ownership of domestic capital. What is a significant factor in long-run economic growth that Robert Fogel, an economic historian, is best Known for suggesting? Improvements in the protection of property and enforcement of contracts through the maturation of the civil and criminal Justice systems Improvements in technology from the incentives created by a better patent system Improvements in worker health from better nutrition Inward oriented policies that protest…arrow_forwardChoose two countries to your interest; one is a developed country and the other one is a developing country. Discuss the economic growth in these two countries based on these specifications: i) income per capita ii) savings rate iii) growth rate of population iv) investment rate (Note: You can search through the World Bank web site in order to obtain the above information)arrow_forward
- Identify one developed and one developing country. Research their recent economic growth rates. Analyze differences in the countries that would help lead to different rates of economic growth. In your response, be sure to avoid analyzing short-run factors of economic performance and focus on the factors that affect long-run economic growth.arrow_forwardAccording to Wheelan all of the below are important determinants for economic growth and development of nations, EXCEPT THIS ONE. Which of the below does Wheelan consider to be NOT ESSENTIAL for economic growth and development? Group of answer choices Possession of large amounts of natural resources. Human capital. Well-defined property rights. Responsible fiscal and monetary policy. Non-excessive levels of regulation. Openness to trade.arrow_forwardIn the second half of the twentieth century, Japan experienced exceptional growth. According to World Bank data, in 1985, Japan’s GDP was $3.67 trillion, and its annual growth rate was 6.33 percent. The GDP in this problem is in constant 2010 dollars. Assuming an exponential annual growth rate of 6.33 percent, calculate Japan’s projected GDP in 2010. In fact, Japan’s 2010 GDP was $5.7 trillion. What could explain any discrepancy between this number and your answer to part (a)?arrow_forward
- International data show a positive correlation between political stability and economic growth. Through what mechanism could political stability lead to economic growth?arrow_forwardIn 2018, according to the International Monetary Fund, India had the world’s 7th-highest nominal GDP, the 142nd-highest nominal GDP per capita, and the 7th-highest real GDP growth rate. What does each of these indicators tell us about the Indian economy and how life in India compares to life in other countries? India has a huge economy that produces lots of goods and services (7th-highest nominal GDP), is still fairly poor (142nd-highest nominal GDP per capita), but has a rapidly increasing standard of living (7th-highest real GDP growth rate). India has a huge economy that produces lots of goods and services (142nd-highest nominal GDP per capita), is still fairly poor (7th-highest nominal GDP), but has a rapidly increasing standard of living (7th-highest real GDP growth rate). India has a huge economy that produces lots of goods and services (7th-highest nominal GDP), is still fairly poor (7th-highest real GDP growth rate), but has a rapidly increasing standard of…arrow_forwardClimate differences affect the economic development of countries. For example, undeveloped countries live in tropical and sub-tropical zones whereas highly developed nations live in temperate zones. Give two reasons why differences in climate tend to affect growth in economic development.arrow_forward
- Population growth surges rapidlyarrow_forwardEconomic growth typically results in rising standards of living and prosperity. However, it also invites negative externalities such as environmental degradation due to over-exploiting of natural resources. As such, the world is confronted with the dilemma of growth versus environmental sustainability. Developing a model explaining the disparity of economic development concentrating on drivers such as tourism sustainability, technological innovation and the quality of leadership would be important not only to facilitate future economic growth in developing countries, but also to the environmental and sociocultural sustainability which ultimately lead to global sustainable development. The present research objective is to develop and test framework of sustainable development by considering the elements of tourism, technological innovation, and national leadership. This further would facilitate growth, environmental and socio-cultural sustainability. Understanding the integration of…arrow_forwardWhich of the following two countries A and B ceteris paribus do you expect to have the higher steady-state level of GDP per capita? Moreover, which country do you expect to grow faster? For this, you may assume that both countries will initially start their growth paths below their corresponding steady states. a) The two countries have initially the same levels of GDP per capita but country A has a higher savings rate . b) The two countries have initially the same levels of GDP per capita but population in country A grows at a rate of 10% while in country B population grows at a rate of 8%. c) The two countries have initially the same levels of GDP per capita but the average educational attainment of workers in country A is about 1.2 times higher than in country B.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning