Principles Of Microeconomics (book With Myeconlab With Pearson Etext Access Card)
12th Edition
ISBN: 9780134435039
Author: CASE, Karl E.; Fair, Ray C.; Oster, Sharon E.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 21, Problem 2.2P
(a)
To determine
How capital accumulation leads to
(b)
To determine
How market economy determines how much investment will be undertaken each period.
(c)
To determine
Why consumption versus investment is a very painful conflict to resolve for a developing economy.
(d)
To determine
How the per capita
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Use an example to explain why, after periods of rapid growth, a low-income country that has not caught up to a high-income country may feel poor.
What does the level of a nation's GDP measure?What does the growth rate of GDP measure?Would you rather live in a nation with a high level of GDP and a low growth rate or in a nation with a low level of GDP and a high growth rate?
“In 2022, India’s GDP was $3,386.4 billion whereas its GNP was $3,370.15 billion”.
The reason for the difference in the two figures is that:A. GDP includes foreign investment, while GNP does not.B. GNP is used for developed countries, while GDP is used for developing countries.C. GDP is a measure of the overall wealth of a nation, while GNP focuses on the distribution ofincome within a country.D. GDP measures the total economic output within a country's borders, while GNP considers theincome earned by a country's residents domestically and abroad.
Chapter 21 Solutions
Principles Of Microeconomics (book With Myeconlab With Pearson Etext Access Card)
Knowledge Booster
Similar questions
- In 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million. In 2000, Denmark had 3 GDP of 160 billion (measured in U.S. dollars} and a population of 5.3 million. By what percentage did Denmarks GDP per capita rise between 1980 and 2000?arrow_forward“In 2022, India’s GDP was $3,386.4 billion whereas its GNP was $3,370.15 billion”. The reason for the difference in the two figures is that:A. GDP includes foreign investment, while GNP does not.B. GNP is used for developed countries, while GDP is used for developing countries.C. GDP is a measure of the overall wealth of a nation, while GNP focuses on the distribution ofincome within a country.D. GDP measures the total economic output within a country's borders, Why should India be cautious about using Gross Domestic Product (GDP) as the primary measure ofeconomic growth?A. GDP does not account for the value of services, only goods.B. GDP provides an accurate reflection of income inequality.C. GDP does not consider changes in a country's population.D. GDP is unaffected by changes in government policies.arrow_forwardIn 2018, according to the International Monetary Fund, India had the world’s 7th-highest nominal GDP, the 142nd-highest nominal GDP per capita, and the 7th-highest real GDP growth rate. What does each of these indicators tell us about the Indian economy and how life in India compares to life in other countries? India has a huge economy that produces lots of goods and services (7th-highest nominal GDP), is still fairly poor (142nd-highest nominal GDP per capita), but has a rapidly increasing standard of living (7th-highest real GDP growth rate). India has a huge economy that produces lots of goods and services (142nd-highest nominal GDP per capita), is still fairly poor (7th-highest nominal GDP), but has a rapidly increasing standard of living (7th-highest real GDP growth rate). India has a huge economy that produces lots of goods and services (7th-highest nominal GDP), is still fairly poor (7th-highest real GDP growth rate), but has a rapidly increasing standard of…arrow_forward
- What is the relationship between the growth rate of real GDP and the growth rate of real GDP per person?arrow_forwardif A's GDP is higher than country's B GDP, does it follow that country A has a higher per capita GDP than country B?arrow_forwardIf US per capita GDP is $50,000 and grows at 3% per year, what will US per capita GDP be in 70 years?arrow_forward
- The Importance of Productivity Two well-known economists, William Baumol and Alan Blinder, have stated that, in the long run, “nothing contributes more to reduction of poverty, to increases in leisure, and to the country’s ability to finance education, public health, environmental improvement and the arts” (1991, 356) than the rate of growth of productivity. 1. Define productivity. 2. See if you can verify Baumol and Blinder’s very strong claim (“nothing contributes more ...”) through the following exercise. Assume GDP in the United States is $10 trillion and that the labor force remains constant in size and fully employed. Estimate the value of GDP in one year’s time if productivity growth is 3%. What if it were only 2%? How much will GDP fall in two years’ time if productivity growth remains at 2% rather than 3%? In three years? 3. Why might environmental regulation reduce productivity growth? 4. Why might it increase…arrow_forwardQuestion 5 Investment in Country X increased from $4.445 million in 1998 to $4.909 million in 1999 at current market prices. In the same period, according to a government report, overall economic growth in Country X was 3.8%. (a) What is meant by investment? (b) In the first sentence of the article you will find the phrase ‘current market prices’. What does this mean? (c) Define what is meant by economic growth. (d) Explain the link between a rise in investment and a rise in economic growth. (e) Explain what benefits economic growth can bring to a country.arrow_forwardWhat is GDP per capita and why is it useful in measuring differences in living standards between different countries?arrow_forward
- Explain why GDP per capita is a better measure of a nation’s standard of living that GDP. What other factors, besides GDP per capita, impact a nation’s standard of living?arrow_forwardWhich would one use if you wanted to understand why income changes in a country? A. development accounting B. investment accounting C. growth accounting D. consumptionarrow_forwardWhat is the GDP growth rate?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning