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Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509
BuyFind

Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509

Solutions

Chapter
Section
Chapter 12, Problem 2CQQ
Textbook Problem
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The world’s rich countries, such as the United States and Germany, have income per person that is about _____ times the income per person in the world’s poor countries, such as Pakistan and India.

a.    2

b.    4

c.    10

d.    30

Expert Solution
To determine

Comparison of GDP between rich and other countries.

Explanation of Solution

Option (c)

The U.S. and Germany have real GDP per person of $51,596 and $44,526 respectively, compared to Pakistan and India which have real GDP of $4,305 and $4,912 respectively. Thus the average income per person in rich countries is roughly 10 times the average income of India or Pakistan. Thus, option ‘c’ is correct.

Option (a)

By the data, the average income per person in rich countries like the U.S. and the Germany is roughly 10 times the average income of India or Pakistan...

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Chapter 12 Solutions

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