Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 21, Problem 25APA
(a)
To determine
Explain why the real GDP per person misrepresents the standard of living.
(b)
To determine
Determine why $2 a day underestimates the standard of living of the poorest citizens of Country I.
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* 6. U.S. growth: On page 52, we noted that the growth rate of per capita GDP.
the United States between 1870 and 1929 was slightly lower than 2.0%A
the growth rate between 1950 and 2018 was slightly higher. Using the follows
table, calculate the actual average annual growth rates during these twvo period
Year
US. income
1870
$3.629
1929
$9,827
1950
$16,294
$61,125
2018
4. GDP per capita shows how much gross domestic product each
1. Economic growth around the world
The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average
annual growth rate during his period. For example, real income per person in Niger was $945 in 1960, and it actually declined to $570 by 2010.
Niger's average annual growth rate during this period was -1.01%, and it was the poorest economy in the table in the year 2010.
The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the
different growth experiences of these economies.
Economy
Canada
United Kingdom
Korea
Hong Kong
Guatemala
Niger
Real Income per Person in 1960 Real Income per Person in 2010
(Dollars)
(Dollars)
35,810
12,946
11,884
32,034
1,610
28,702
4,518
44,070
1,985
3,859
945
570
Annual Growth Rate
(Percent)
2.06
2.00
5.93
4.66
1.34
-1.01
Chapter 21 Solutions
Macroeconomics
Ch. 21.1 - Prob. 1RQCh. 21.1 - Prob. 2RQCh. 21.1 - Prob. 3RQCh. 21.2 - Prob. 1RQCh. 21.2 - Prob. 2RQCh. 21.2 - Prob. 3RQCh. 21.2 - Prob. 4RQCh. 21.2 - Prob. 5RQCh. 21.3 - Prob. 1RQCh. 21.3 - Prob. 2RQ
Ch. 21.3 - Prob. 3RQCh. 21.3 - Prob. 4RQCh. 21.3 - Prob. 5RQCh. 21 - Prob. 1SPACh. 21 - Prob. 2SPACh. 21 - Prob. 3SPACh. 21 - Prob. 4SPACh. 21 - Prob. 5SPACh. 21 - Prob. 6SPACh. 21 - Prob. 7SPACh. 21 - Prob. 8SPACh. 21 - Prob. 9APACh. 21 - Prob. 10APACh. 21 - Prob. 11APACh. 21 - Prob. 12APACh. 21 - Prob. 13APACh. 21 - Prob. 14APACh. 21 - Prob. 15APACh. 21 - Prob. 16APACh. 21 - Prob. 17APACh. 21 - Prob. 18APACh. 21 - Prob. 19APACh. 21 - Prob. 20APACh. 21 - Prob. 21APACh. 21 - Prob. 22APACh. 21 - Prob. 23APACh. 21 - Prob. 24APACh. 21 - Prob. 25APACh. 21 - Prob. 26APACh. 21 - Prob. 27APACh. 21 - Prob. 28APA
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Similar questions
- Refer back to the Work It Out about Comparing the Economies of Two Countries and examine the data for the two countries you chose. How are they similar? How are they different?arrow_forwardWhy might per capita GDP be only an imperfect measure of a countrys standard of living?arrow_forwardPage 551 5. Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in bilions. Compensation of employees $194.2 U.S. exports of goods and services 17.8 Consumption of fixed capital 11.8 Government purchases 59.4 Taxes on production and imports 14.4 Net private domestic investment 52.1 Transfer payments U.S. Imports of goods and services 13.9 16.5 Personal taxes 40.5 Net foreign factor income 2.2 Personal consumption expenditures 219.1 Statistical discrepancyarrow_forward
- In 2015, the GDP of US was $2100. Suppose that US has a growth rate of 2.3%. a. What is US GDP after 8 years? b. What is US GDP after 12 years?arrow_forwardIn 2004, the GDP of UK was $8200. Suppose that UK has a growth rate of 1.8%. a. What is Britain's GDP after 8 years? b. What is Britain's GDP after 20 years?arrow_forward19. Table below shows nominal GDP, the GDP deflator and the population for the U.S. for 2019 and 2020. Year Nominal GDP GDP deflators Population ( in $ billions) |2019| 1987 = 100 (in millions) 4567 51.2 240 2020 6532 116.8 280 Using the information contained in the above table, calculate: (a) Growth rate of Nominal GDP (b) Growth rate of population (c) Growth rate of real GDP (d) Growth rate of real GDP per capitaarrow_forward
- IS GDP important for economic growtharrow_forwardChanges in productivity can be analysed by looking at how GDP per employed worker changes over time or how GDP per hour worked changes over time. Why might one measure be more preferable than the other? a. GDP per hour worked is preferable because it eliminates the need to adjust for variations in productivity between employed workers. b. GDP per employed worker is preferable because the number of employed workers has risen significantly over time. c. GDP per employed worker is more accurate because the data available on the number of employed workers is more accurate than the data available on the number of hours worked. d. GDP per hour worked is more accurate because the average number of hours worked per employed worker has changed over time. e. Both measures are equally good.arrow_forwardASAParrow_forward
- 50. Which of the following sectors of the economy has grown the fastest in the United States since the mid-1970s? (A) Service (B) Agriculture (C) Retail (D) Manufacturing (E) Militaryarrow_forward1. does the manufacturing sector contributes to the Gross Domestic Product of a country? 2. How does it contributes to the GDP?arrow_forward
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