MyLab Economics with Pearson eText -- Access Card -- for Principles of Macroeconomics
12th Edition
ISBN: 9780134061191
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 16, Problem 2.1P
To determine
Role of new technology in a developing country.
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Which of the following statements best describes the relationship between Economic Growth and Literacy Rates ?
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Literacy Rates decline as Economic Growth improves because Education is less useful in a developed economy.
B.
Increased Literacy initially stimulates Economic Growth by improving Labour Productivity but declines as the Opportunity Cost of Education increases with long-term Economic Growth.
C.
Increased Literacy stimulates Economic Growth by increasing Labour Productivity; People consume more Education as the Economy continues to grow.
D.
There is no correlation between Economic Growth and Literacy Rates.
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Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000.
How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP?
India's per-capita GDP must double __________ times.
Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate.
Doubling time: ______________________ years
How many years will it take for India to reach Italy’s current level of GDP per capita?
It will take ________________ years for India to reach Italy's current level of GDP per capita.
Chapter 16 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Principles of Macroeconomics
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