Say that the average worker in Canada has a productivity level of
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- Say that the average worker in the U.S. economy is eight times as productive as an average worker in Mexico. If the productivity of U.S. workers grows at 2 for 25 years and the productivity of Mexicos workers grows at 6 for 25 years, which country will have higher worker productivity at that point?arrow_forwardIf real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?arrow_forwardSay that the average worker in Canada has a productivity level of $30 per hour while the average worker in the United Kingdom has a productivity level of $25 per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1% per year while worker productivity intheUKgrows3%peryear.Afterfiveyears,whowill have the higher productivity level, and by how much?arrow_forward
- Country A’s real GDP per capita is $4,000 today, but it is constantly growing at 5%per year. Country B’s current real GDP per capita is $16,000, but it is constantly growing at 2% per year. Willthe standard-of-living in Country A ever catch-up with or overtake Country B? If so, when would it happen?Provide your analysisarrow_forwardReal GDP per capita in the country of Arcadia grew from about $4,703 in 1900 to about $42,731 in 2008, which represents an annual growth rate of 2.06 percent . if the arcadia continues to grow at this rate, calculate the number of years when its real GDP per capita will double_____ years . ( enter your response as an integers)arrow_forwardIf a country experiences real economic growth of 12% per year, it can go from being one of the poorest to one of the richest in Question 47 options: one generation. In the last couple of decades China’s growth rate has been higher than 12%. one generation. However, in the last couple of decades not even China’s growth rate has been this high. three generations. In the last 75 years China’s growth rate has been higher than 12%. three generations. However, in the last couple of decades not even China’s growth rate has been 12%.arrow_forward
- Suppose that the average annual rate of population increase in Econland in recent years was about 2 percent. Based on this rate of growth, the population of Econland will double in about 35 years. 11 years. 7 years. 46 years.arrow_forwardIf an economy's GDP will double in 15 years, then its growth rate must be about: 7% 15% 10% 4.7%arrow_forwardSuppose Egypt has a real GDP per capita of $28,000. If real GDP per capita grows at a 3.5% annual rate, how long will it take for real GDP per capita to reach $70,000 in Egypt?arrow_forward
- Sweden and Norway are two neighboring countries in Northern Europe with similar savings rates, population growth rates, technology growth rates, and depreciation rates. However, Norway differs from Sweden in that Norway has large deposits of oil all along its coast, which makes it very easy for Norway to produce large quantities of crude oil every year with relatively little capital and labor. a) Draw a Solow Growth diagram that compares Sweden and Norway. What is the main difference between the two countries in the diagram? b) According to the Solow Growth Model, which country would have a higher standard of living in the long run? Which country would have a higher growth rate of its standard of living in the long run? c) Suppose now that, in the long run, oil becomes obsolete and has no value because it is uneconomical relative to renewable energy sources like solar and wind power. What would this do to your Solow Growth diagram in part a? How would the standard of living in Norway…arrow_forwardThe rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same. Compute the doubling time for France’s per capita real GDP. Compute the doubling time for Korea’s per capita real GDP. What will France’s per capita real GDP be in 2045? What will Korea’s per capita real GDP be in 2045?arrow_forwardIf in 2008 China’s real GDP is growing at 9 percent a year, its population is growing at 1 percent a year, and these growth rates continue, in what year will China’s real GDP per person be twice what it is in 2008 Please use the other formula to solve this proble not the rule of 70, because i have the solution using rule 70!arrow_forward
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