Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 28, Problem 10DQ
To determine
Costs and benefits of the economic growth .
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6. LO 2 Suppose that z, the marginal product of efficiency units of labour, increases in the
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levels of human capital, consumption, and output? Explain your results.
On the following scatter plots, the 1960 real per capita GDP is on the x-axis and the y-axis represents the average economic
growth rate between 1960 and 2017. Which one shows the strongest evidence in favour of convergence?
O
2.5
1960-2017 growth (percent)
2.0
1.5
1.0
3
2
5
5
Convergence
10
1960 GDP (constant dollars per person)
Convergence
15
10
15
1960 GDP (constant dollars per person)
20
20
Chapter 28 Solutions
Economics (Irwin Economics)
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- Last year real GDP in the imaginary nation of Olympus was 445.0 billion and the population was 2.2 million. The year before, real GDP was 390.0 billion and the population was 2.1 million. What was the growth rate of real GDP per person during the year? 14.1 percent O 0.09 percent O 1.09 percent 8.9 percentarrow_forwardIn the year 2014, the world's average per capita GDP was $14,517. What percent of the world's population lived in a country with per capita GDP that was below $14,517? O 21% 43% 56% OOOO 73% Show Transcribed Text Roughly what percent of the world's population live in countries with per capita GDP lower than the average world per capita GDP? 75% 50% © 25% C 10%arrow_forwardIf Real GDP was $9,542 billion in year 2 and it had been $9,300 billion in year 1, what was the approximate economic growth rate during this time period? Select one: O a. 9.7 percent O b. 2.4 percent O c. 3.5 percent O d. 2.6 percentarrow_forward
- Consider the economies of Tralfamadore and Sporon, both of which produce agricultural products using only land and labour. The following tables show the supply of land, population size, and real GDP for these two economies from 2020 to 2023. Complete the last column of the following two tables by calculating real GDP per capita for the two economies. Tralfamadore Land Real GDP (Dollars) Real GDP per Capita (Dollars) Year (Hectares) Population 2020 20,000 500 4,500 2021 20,000 1,000 10,000 2022 20,000 1,500 16,500 2023 20,000 2,000 24,000 Sporon Land Real GDP Real GDP per Capita (Dollars) Year (Hectares) Population (Dollars) 2020 20,000 1,000 15,000 2021 20,000 2,000 28,000 2022 20,000 3,000 36,000 2023 20,000 4,000 40,000 Rapid population growth tends to threaten economic growth in economies with higher or lower land-labour ratios.arrow_forwardQuestion 1 If a country's GDP is growing at 5% a year, how many years does it take for the country's GDP to double? 13.8 O 14.2 O 15.2 O 18.2arrow_forwardUsing the table, what is the real GDP growth from 2001 to 2002? O 50% YEAR O 1.25% 2001 2002 O-11.11% QUANTITY APPLES 100 150 BANANAS APPLES 40 $0.50 60 $1.00 PRICES BANANAS $2.50 $1.00arrow_forward
- 4. What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor? Illustrate these factors in terms of the production possibilities curve. LO8.3arrow_forwardD Question 14 Suppose for the country of Joshua-land, the annual inflation rate is 7%, the population growth is 5% per year while GDP increases by 2% per year. How long would it take for the country to double its GDP? O 7 years O 14 years 35 years O Never Question 15 For the previous question, how long would it take Joshua-land to double its GDP capita? per O 7 years O 14 years O 35 years Never Question 16 For Joshua land, how long would it take for prices to double? O 7 years O 10 years 35 years O Not enough informationarrow_forwardReal GDP in Sub-Saharan Africa has recently risen at a rate of about 5% per year. If its growth continues at this rate, how many years would it take for Sub-Saharan Africa's real GDP to double? O 14 years. O 3.5 years. O 5 years. O 20 years.arrow_forward
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