Financial Growth Test Questions Essay

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Problem 1 In what specific ways (if any) does a college education increase a worker's productivity? Take some special care with this problem. A college education can increase a workers’ productivity in various ways. Generally a college graduate enters into the labour market with more knowledge and higher skills than a non-college graduate. These higher skills can be improved thinking, writing, communication and problem solving; which increase productivity. The thinking processes increases the application of their knowledge which increases their productivity and efficiency. Also a college education allows the worker to be more adaptable to the changing environment of their industry and allows them to learn quicker as the changing needs…show more content…
A nation can import the resource from another nation however this will only increase output till that runs out. Therefore, growth is limited by the fact that the finite resources of Earth are not limitless. Problem 4 If GDP is increasing by 3% per year how long will it take GDP to double? If GDP increases by 3% per year it would take 24 years for the GDP to double. To solve you use the Rule of 72. 72/3=24 Problem 5 Given the same conditions in Problem 4, how long will it take Per Capita GDP to double if the population grows at 2%? If GDP grows at 2% per year it would take 71 years for the Per Capita GDP to double. To solve I used the following formula: =LOG(2)/(LOG(1.03)-LOG(1.02))= 71.04702 Internet Questions Visit the Heritage Foundation website page for the Index of Economic Freedom. How does economic freedom in the U.S. compare to countries in South America and in Europe? How would you expect future economic growth in the U.S. to compare to those nations? Explain. When comparing the economic freedom of the U.S to countries in South America and Europe I found that difficult to look at the various countries together vs a select few, therefore I compared two specific countries from each to the U.S. from South America I selected Brazil and from Europe I selected Demark. The economic freedom is measured on 10 variables: Business Freedom, Trade Freedom, Fiscal Freedom, Government

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