Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 22, Problem 22.4.12PA
To determine
The reasons for the Roman Empire not being able to experience and sustain long run economic growth .
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Which of the following is a true statement?
Multiple Choice
Economists who support economic growth say that it is the most practical route to the higher standards of living that the vast majority of people desire.
Most economists believe that the recent rise in the average rate of productivity growth implies an end to the business cycle.
Most economists believe that increases in real GDP actually produce decreases in overall economic well-being because of spillover costs.
Mainstream economists disagree as to whether the rate of productivity growth was higher between 1995 and 2012 or between 1973 and 1995.
Some resource-rich countries have succeeded in converting resource wealth into longterm and equitable economic development, while many others have not. Natural resources have played a fundamental role in the growth of several industrialized economies, including Germany and the United Kingdom, where coal and iron ore deposits were a precondition for the Industrial Revolution. The United States was the world’s leading mineral economy from the mid-nineteenth to the mid-twentieth century and in the same period became the world’s leader in manufacturing (van der Ploeg 2011). More recently, countries such as Botswana, Chile, and Norway have used abundant oil and mineral resources as the foundation for economic growth.
Discuss in depth, based on your understanding of the various sources of fiscal risks what complicates fiscal management in resource rich countries. Taking Zambia as a case study, suggest ways in which these risks can be managed.
In 1776, Adam Smith ([1776] 1936) published his treatise, An Inquiry into Nature and Causes of the Wealth of Nations , which was taken by many to be a theory of economic growth. Smith, however, was clearly concerned with economic development. The classical school of economic thought, predominantly modeled after Smith, is largely geared toward understanding and explaining economic development. Smith presented a supply driven model of growth, where output was related to labor, land, and capital. Thus, economic growth, which is the increase in output, was related to populationgrowth, investment, land growth, and increases in productivity. According to Smith, society was dependent on the economy’s ability to sustain its increasing workforce. Investment was dependent on the rate of savings. Land growth was dependent on the ability to acquire more land (through conquest) or on the increase in the productivity of existing land. He also believed in the division or specialization of labor as a…
Chapter 22 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 22 - Prob. 22.1.1RQCh. 22 - Prob. 22.1.2RQCh. 22 - Prob. 22.1.3PACh. 22 - Prob. 22.1.4PACh. 22 - Prob. 22.1.5PACh. 22 - Prob. 22.1.6PACh. 22 - Prob. 22.1.7PACh. 22 - Prob. 22.1.8PACh. 22 - Prob. 22.2.1RQCh. 22 - Prob. 22.2.2RQ
Ch. 22 - Prob. 22.2.3RQCh. 22 - Prob. 22.2.4RQCh. 22 - Prob. 22.2.5PACh. 22 - Prob. 22.2.6PACh. 22 - Prob. 22.2.7PACh. 22 - Prob. 22.2.8PACh. 22 - Prob. 22.2.10PACh. 22 - Prob. 22.2.11PACh. 22 - Prob. 22.2.12PACh. 22 - Prob. 22.3.1RQCh. 22 - Prob. 22.3.2RQCh. 22 - Prob. 22.3.3PACh. 22 - Prob. 22.3.4PACh. 22 - Prob. 22.3.5PACh. 22 - Prob. 22.3.6PACh. 22 - Prob. 22.4.1RQCh. 22 - Prob. 22.4.2RQCh. 22 - Prob. 22.4.3RQCh. 22 - Prob. 22.4.4PACh. 22 - Prob. 22.4.5PACh. 22 - Prob. 22.4.6PACh. 22 - Prob. 22.4.8PACh. 22 - Prob. 22.4.9PACh. 22 - Prob. 22.4.10PACh. 22 - Prob. 22.4.11PACh. 22 - Prob. 22.4.12PACh. 22 - Prob. 22.5.1RQCh. 22 - Prob. 22.5.2RQCh. 22 - Prob. 22.5.3PACh. 22 - Prob. 22.5.4PACh. 22 - Prob. 22.5.5PACh. 22 - Prob. 22.5.6PACh. 22 - Prob. 22.5.7PACh. 22 - Prob. 22.5.8PACh. 22 - Prob. 22.5.9PACh. 22 - Prob. 22.1RDECh. 22 - Prob. 22.2RDECh. 22 - Prob. 22.3RDE
Knowledge Booster
Similar questions
- According to the Bangladesh Bureau of Statistics (BBS), the unemployment rate in Bangladesh is 4.20% of which 46% are university graduates. The rate of unemployment among people with tertiary level education has considerably risen. On the other hand, many foreigners mainly from India and Sri Lanka are working in various industrial sectors. This is happening because our local labor force lacks the required technical and managerial skills much-needed in this era of the Industrial Revolution. Thus, for Bangladesh to attain sustainable economic growth through the rise of potential GDP, it is imperative to improve the productivity of the workforce. a) Describe the forces that might help the potential GDP of Bangladesh to grow using the concepts of the Aggregate labor market. Illustrate your answer with an appropriately labeled diagram.b)Such an improvement in productivity and economic growth is followed by higher income and consumption. How do you think this will affect the price level and…arrow_forwardIn 1776, Adam Smith ([1776] 1936) published his treatise, An Inquiry into Nature and Causes of the Wealth of Nations , which was taken by many to be a theory of economic growth. Smith, however, was clearly concerned with economic development. The classical school of economic thought, predominantly modeled after Smith, is largely geared toward understanding and explaining economic development. Smith presented a supply driven model of growth, where output was related to labor, land, and capital. Thus, economic growth, which is the increase in output, was related to population growth, investment, land growth, and increases in productivity. According to Smith, society was dependent on the economy’s ability to sustain its increasing workforce. Investment was dependent on the rate of savings. Land growth was dependent on the ability to acquire more land (through conquest) or on the increase in the productivity of existing land. He also believed in the division or specialization of labor as a…arrow_forwardInternational data show a positive correlation between political stability and economic growth. Through what mechanism could strong economic growth lead to political stability?arrow_forward
- The following table reports real GDP per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real GDP per person in the Central African Republic was $1,010 in 1960, and it actually declined to $628 by 2010. The Central African Republic's average annual growth rate during this period was -0.95%, and it was the poorest economy in the table in the year 2010. The real GDP-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.arrow_forwardIn the 1990s, developed countries agreed to double their aid to Africa by 2015. A report by the United Nations conference on Trade and Development noted that sceptics had raised concerns about how much effect the doubling of aid would have on output and incomes in Africa, if the quantity of other inputs such as human capacity and institutions were to remain fixed. It also pointed to the divisions between the sceptics with some suggesting the return would diminish when aid reached only 4% of GDP, while others thought they would diminish only when it had reached 50%. It should be added that even if the returns do begin to diminish, they could still be very important.In 1887, Cecil Rhodes created the De Beers Consolidated mines Company, which controlled about 90% of the total world supply of rough uncut diamonds with its South African mines. Until 2001, De Beers produced about half of the world’s diamonds in its mines and marketed about 80% of the world’s diamonds. Diamond producing…arrow_forwardWhich of the following statements is correct? World economic growth was near zero from AD1 until about 1800 when it began to rise steadily. World economic growth has been up and down since AD 1. World economic growth grew rapidly from about AD 1 to 1800 and then leveled off. World economic growth has been steadily falling by about 2% each year since AD 1. World economic growth has been steadily rising by about 2% each year since AD 1.arrow_forward
- East Asian countries grew at fast rates because they save and invest an unusually high percentage of their GDP. They started off as poor relative to their steady state They use their resources efficiently. They have stable property rights. All of the above. Which of the following statements best describes the rate of growth in productivity (TFP) in the United States since 1950? Productivity growth has been steady. Productivity has been growing more slowly every decade. Productivity grew quickly in the 1950s and 1960s, more slowly from the early 1970s through 1995, and then quickly again with a slowdown in recent years. Productivity grew slowly from the 1950s through the 1970s, and then began to accelerate, probably due to advances in computer technology. Productivity has been growing more quickly every decade since World War II Suppose that the money supply will grow by 20% in Argentina over the next 10 years. Velocity is constant. Real income will grow at 3%. The inflation…arrow_forwardChina's economic development has been an unprecedented growth miracle in recent human history. Över the four decades since opening up, China has transformed from a poor and backward economy to a prosperous and modern one. Indeed, for much of its growth history, China rode on the waves of globalisation, international trade, and foreign investment. However, recent global events, such as the Sino-American trade war and the Covid-19, have threatened China's centrality in the global economic order. Analyse these two (2) calamitous events and explain how each of these events has threatened China's overall position and standing in the global economy. Provide relevant examples.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
- The following table shows levels of real income per person in several economies during the years 1960 and 2010. The table further shows the average annual growth rate for each economy over this time period. For instance, 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 featured the lowest level of real income per person of any economy listed in the table in the year 2010. The levels of real income per person are reported in U.S. dollars using a base year of 2005. The following exercises will provide insight into the different growth experiences of these nations. Economy Canada United Kingdom Korea Hong Kong Guatemala Niger Indicate which economy satisfies each of the following statements. Statement This economy experienced the fastest rate of growth in real income per person from 1960 to 2010. Real Income per Person in 1960 Real Income per Person in 2010 (Dollars)…arrow_forwardIn year 0, Country A has a real GDP per capita of $1,600. If Country A grows at a constant rate of 6% per year and Country A's population remains constant, what is Country A's real GDP per capita by year 20? (Round to the nearest dollar.) Provide your answer below: $$$2042 Answer neatly with proper explanation of itarrow_forwardSuppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run output per capita will be greater in B than in A. economic growth will be higher in A than in B. more information is needed to answer this question. output per capita will be greater in A than in B.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education