Which of the following can increase the future rate of growth of the U.S. economy and contribute to higher future living standards? A. An increase in the proportion of the population that is retired and therefore receiving income from social security pensions rather than from work. O B. An increase in the rate of savings and investment. OC.A ban on new immigration that will slow the rate of growth of the labor force. OD.A decrease in the rate of saving and investment.
Q: All of the following are considered factors contributing to economic growth except O Growth in the…
A: (Q1) Economic growth is mainly considered as an increase in the production of goods and services…
Q: In Figure #1, which of the following points represent attainable production points? none of the…
A: Production possibility curve (PPC) is a representation of two goods which depicts the different…
Q: Which of the following is unlikely to affect the rate of economic growth? O the quality of available…
A: The rate of economy growth will get affected when the next period's rate of economic growth is…
Q: The catch up effect means that countries that start off rich tend to grow more rapidly than…
A: Catch up effect states that a poor country that has low initial growth rate but higher productivity…
Q: Which of the following is true of economic expansions? O Governments can correctly predict the…
A: The answer is - since WWII, developed countries have been expanding in most of the years.
Q: Suppose a country's real GDP is $18 trillion and the population is 400 million. Instructions: Enter…
A: GDP per capita is given by the formula:GDP per capita=GDP of the countrytotal population Thus, GDP…
Q: Consider the production functions shown here, which show the output of a bakery over time. Suppose…
A: Production function shows the relation between capital per worker and output per worker.
Q: Which of the following is likely to increase long-run economic growth? O A. Inflation. O B. An…
A: 1) Inflation is a persistent rise in the value of goods and services, which erodes purchasing power.…
Q: Which of the following movements on a Production Possibilities Graph would represent economic growth…
A: PPC is Production Possibilities Curve. It represents production of two goods given the resources and…
Q: Suppose that in 2014 China's real GDP is growing at 9 percent a year and its population is growing…
A: here we calculate the time year when real GDP double as follow-
Q: Why does higher worker productivity not necessarily mean GDP per capita will rise? O GDP per Capita…
A: Increased productivity and GDP growth rate are closely linked together but are these are not…
Q: Assuming that real GDP per person is a good measure of living standards, between 2016 and 2017,…
A: The worth of all goods and services produced by an economy in a given year is estimated using the…
Q: What is meant by economies of scale and what is the importance of this concept to economic growth?
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: The twentieth century saw unprecedented growth in and O a) Western Europe; India O b) Western…
A: 32) In the second half of the nineteenth century, the industrial revolution was experienced in many…
Q: The primary measure economists tend to use to measure changing living standards over time is O real…
A: Ans 11.The correct answer is real GDP per capita So we can say that where I think standard of living…
Q: QUESTION 20 Which of the following statements is most accurate about modern economic growth? O a.…
A: * ANSWER :- * The OPTION B is correct answer. * Explanation :-
Q: If the US has an average growth rate is 2.1% and South Korea has an average growth rate of 5.%, then…
A: Growth, the interaction by which a country's wealth increments over the long run. Albeit the term is…
Q: c. Suppose that public policy alters the saving rate so that the economy reaches the Golden Rule…
A: Note - Since you have posted multiple independent questions in the same request, we will solve the…
Q: 8. Under a Malthusian paradigm, why do wars, pandemics, and famines cause a tem- porary increase in…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Economic growth may be described as? Select one: O a. An increase in money available to the economy…
A: GDP , also called Gross domestic product, is a standard method used in estimating the level of…
Q: All of the countries that grant considerable economic freedom have experienced positive rates of…
A: The Economic Freedom of the World index indicates that Economic freedom is the fundamental right of…
Q: If the value of the goods and services a country produces decreases while its population stays the…
A: Given that the value of the goods and services a country produces decreases while population stay…
Q: What is the outcome of classical growth theory? According to classical growth theory, O A. people…
A: The classical growth theory contends that financial growth will diminish or end due to an expanding…
Q: 3. Which of the following is not one of the three terms used to describe and compare the level of…
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: What happens in the long run for a country that increases its saving rate? O Productivity increases…
A: A greater saving rate leads to a higher steady-state capital stock and production level. The…
Q: Identify the type of central economic problem that is related to problem of choice of what to…
A: Economics is the social science that discusses the behavior of different variables that affect the…
Q: At which point is the country's future growth rate likely to be the highest? Briefly explain why. O…
A: The first two questions are already solved so I solved the third. Production possibility frontier: -…
Q: Why does productivity growth in high-income economies not slow down as it runs into diminishing…
A: Productivity alludes to the proportion of the result of a business, or an economy contrasted with…
Q: Jtilizing the aggregate production functions to the right, Robert Solow asserted that the most…
A: We are going to discuss the inevitable contribution of technological change into the economic…
Q: A country faces diminishing marginal returns when increasing it's capital stock. If this country…
A: Diminishing marginal returns is defined as the decrease in production with the addition of more and…
Q: What is the opportunity cost of economic growth? O A. Land. B. Both capital goods and land. OC.…
A: Opportunity Cost is the cost of producing NEXT BEST ALTERNATIVE. For EXAMPLE - Say a person is…
Q: Which of the following statements about the opportunity cost of economic growth is correct? The…
A: The opportunity cost of economic growth is the consumption that's being given up today to have more…
Q: Which of the following statements is (are) problems associated with economic growth? O a. Growth of…
A: GDP(GROSS domestic product) is the sum of value of goods and services that are produced in an…
Q: Assuming that real GDP per person is a good measure of living standards, between 2016 and 2017,…
A: Basics:- Real GDP is calculated without inflation impact on output. Standard of living means…
Q: Which of the following statements about productivity is not true? O A. It is not directly observable…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: “Economic growth doesn’t simply depend on having more natural resources, more or higher-quality…
A: Economic growth just comes from expanding the quality and amount of the components of creation,…
Q: Assume a country increases the production of capital goods (& decreases consumer goods). This will:…
A: An economy generally produces teo types of goods that are capital goods and consumer goods. Capital…
Q: Which of the following is not a determinant of economic growth? O a. Growth in physical capital. O…
A: Economic growth is defined as the process whereby the final goods and services increase in the…
Q: Which of the following will improve with the increase in productivity? O a. Prices O b. None of…
A: As the productivity increases, the standard of living of the people in the economy also increases.
Q: (b) Use a model of endogenous growth to explain how encouraging more private investment in education…
A: Endogenous growth theory is referred to the economic theory that can argue that there is a…
Q: Suppose the standard of living is accurately measure by real GDP per capita. Then, ceteris paribus,…
A: In an economy, when real GDP per capita is accurately measure standard of living, it explains that…
Q: xplain why U.S. potential GDP per worker per week is greater than that in Europe. Vhat could induce…
A: Reason for more potential GDP per worker:The potential GDP per worker in US is more than the Europe.…
Q: A country faces diminishing marginal returns when increasing it's capital stock. If this country…
A: Answer: Diminishing marginal returns: if a particular input is increased keeping all other inputs…
Q: Suppose that there are diminishing returns to capital. Suppose also that two countries are the same…
A: Given that:- There are diminishing returns to capital and saving rate rises from 5% to 7% in long…
Q: What annual growth rate will result in a country roughly doubling its GDP in 10 years? Select one:…
A: Gross domestic product is the value of final goods producing in a territory over a period of time.…
Q: An increase in the production of capital goods and a reduction in the production of consumer goods…
A: The economic growth is the increase in the value of all goods and services produced in a given year.…
Q: The relationship between international aid and economic growth for less-developed countries is O a)…
A: International aid refers to the practice of foreign countries extending a hand of help in the for of…
Step by step
Solved in 2 steps
- Why dues productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?An economy starts off with a GDP per capita of 5,000. How large will the GDP per capita be if it grows at an annual rate of 2 for 20 years? 2 for 40 years? 4 for 40 years? 6 for 40 years?How did the Industrial Revolution increase the economic growth rate and income levels in the United States?
- Suppose that 10 workers were required in 2010 to produce 40,000 bushels of wheat on a 1,000-acre farm. a. What is the average output per acre? Per worker? b. If in 2020 only 8 workers produce 44,000 bushels of wheat on that same 1,000-acre farm, what will be the average output per acre? Per worker? c. By what percentage does productivity (output per worker) increase over those 10 years? Over those 10 years, what is the average annual percentage increase in productivity?Computing growth rates (II): Suppose k, l, and m grow at constant rates givenby g k, gl , and gm. What is the growth rate of y in each of the following cases?(a) y = k 1/3(b) y = k 1/3l 2/3(c) y = mk 1/3l 2/3(d) y = mk 1/4l 3/4(e) y = mk 3/4l 1/4(f ) y = 1klm2 1/2(g) y = 1kl2 1/4 11/m2 3/416)A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. Thus, if Mexico’s real GDP per person is growing at 7 percent per year, it will take about 10 years (= 70/7) to double. Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the United States. If real GDP per person in Mexico grows at the rate of 4 percent per year, about how long will it take Mexico’s real GDP per person to reach the level that the United States was at in 2005? (Hint: How many times would Mexico’s 2005 real GDP per person have to double to reach the United States’ 2005 real GDP per person?) Instructions: Enter your answer as a whole number.
- Why is per capita gross domestic product (per capita GDP) better than gross domestic product (GDP) as a measure of a country's wealth? O Location and land mass have a large effect on GDP and must be considered in assessing a country's economy. O Because per capita GDP takes population into account, it is more useful for comparing the standard of living in different countries. O Per capita GDP provides information on income, while GDP only provides information on investment. O Per capita GDP includes the value of land, minerals, and crops not counted by normal GDP. The advantages of the sole proprietorship include O ease of start-up © full control ob business decisions © exclusive rights to profits © all of the aboveThe capital accumulation theory of economic growth that economies attain growth through saving invested in increasing the capital resources in the economy fails to take account of which of the following factors? a) For capital accumulation to produce economic growth it has to be the right type of capital that can be applied to the production of goods desired by society. b) The capital created has to be efficient. Savings may be squandered by producing capital goods that consume a lot of resources to produce, produce poor quality goods, or are wasteful of other resources. c) For capital to be productive there must be appropriate infrastructure including transportation and communication systems, banking and legal systems, as well as requisite natural resources and often appropriately skilled labor. d) Societies may still squander the wealth created by capital accumulation and in the long-run limit the growth of the economy. e) All of the aboveSuppose that India is currently growing at a rate of 14% per year and is producing real GDP per capita equal to $7,000, whereas the United States is currently growing at a rate of 5% per year and is producing real GDP per capita equal to $28,000.a) How long will it take India to double its real GDP per capita?b) How long will it take the United States to double its real GDP per capita?c) How much will India's real GDP per capita be in 20 years?d) How much will the USA's real GDP per capita be in 14 years?
- True or false? If false, explain why.a. Technological advance, which to date has played a relatively small role in U.S. economic growth, is destined to play a more important role in the future.b. Many public capital goods are complementary to private capital goods.c. Immigration has slowed economic growth in the United States.31) Given the narrow interpretation of technology, technology will include which of the following? A) how well firms are run B) the organization and sophistication of markets C) the political environment D) none of the above 32) Suppose 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 A) the growth rate of output per capita will be greater in B than in A. B) the growth rate of output per capita will be greater in A than in B. C) the capital-labor ratios (K/N) will be the same in both countries. D) the growth rate of output per capita will be the same in both countries. 33) Suppose 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 A) the capital-labor ratio…Suppose, due to the effects of a military conflict that has ended, that a country experiences a large reduction in its capital stock. Assume no other effects of this event on the economy. Which of the following will tend to occur as the economy adjusts to this situation? Question 5Select one: A. a relatively low growth rate for some time B. a relative high growth rate for some time C. zero growth for some time, followed by a gradually increasing growth rate D. positive growth, followed by negative growth, and then zero growth E. none of these