MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Question
Chapter 22, Problem 2P
To determine
The income per capita in DVC.
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- Suppose that work hours in New Zombie
are 200 in year 1, and productivity is $8
per hour worked. What is New Zombie's
real GDP? If work hours increase to 210
in year 2 and productivity rises to $10
per hour, what is New Zombie's rate of
economic growth? LO8.4
In the year 2014, the world's average per capita GDP was $14,517. What percent of the world's population
lived in a country with per capita GDP that was below $14,517?
O 21%
43%
56%
OOOO
73%
Show Transcribed Text
Roughly what percent of the world's population live in countries with per capita GDP lower than the average
world per capita GDP?
75%
50%
© 25%
C
10%
Select one or more:
O a. If Country C's GDP per capita rises from $2,500 to 7,500, and Country D's GDP per capita rises from $6,000 to 18,000, the
ratio of GDP per capita between the two countries is unchanged.
O b. If a country's GDP doubles every 50 years on a ratio scale graph against time it will rise at an increasing rate.
O c. Country B is growing a higher percentage rate than Country A, but Country A is 5 times richer than Country B. On a linear
scale graph against time the gap between the two lines must be narrowing.
O d. Country E is growing at the same percentage rate as Country F, but Country E is 3 times richer than Country F. On a log scale
graph against time the gap between the two lines will be constant.
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- Assume that a very tiny and very poor DVC has income per capita of $300 and total national income of $3 million. How large is its population? If its population grows by 2 percent in some year while its total income grows by 3 percent, what will be its new income per capita rounded to full dollars? If the population had not grown during the year, what would have been its income per capita?arrow_forwardWhich of the following is true about classifying countries as low income, middle income, or high income? O There is no criteria for classifying economies as low income, middle income, or high income O Countries with unemployment rates above 5% are classified as low income Low income countries have $1,025 per capita GDP per year or lower O High income countries have $15,625 GDP per capita GDP per year or higherarrow_forwardAssume that real GDP per capita in Country X is currently $50,000 per person. Also, assume that real GDP per capita in Country X grows at a rate of 2% per year. Rounding to the nearest 2 decimals, the real GDP per person in Country X in 10 years will be approximately 3.7 points Save Answ O a. $66,124 O b. $60,000 O. $58,272 Od. $61,000arrow_forward
- Explain why U.S. potential GDP per worker per week is greater than that in Europe. What could induce Europeans to work the same hours as Americans and would that close the gap between potential GDP per worker in the two economies? U.S. potential GDP per worker per week is greater than that in Europe because O A. U.S. workers work fewer hours on average but they are more productive than Europeans O B. U.S. workers are more productive per hour of work and they work longer hours than Europeans C. the supply of labor in America is smaller than the supply of labor in Europe O D. the United States uses less capital but they use it more effectively Click to select your answer and then click Check Answer. 2. parts remaining Clear All MacBook Air 80 888 000 000 esc F1 F2 F3 F4 F5 F6 F7 F8 ! @ # $ 1 2 3 4 5 6 7 Q W E Y tab A S D F G H * 00 T Rarrow_forwardT-shirts 1000 A 500 Costa Rica 500 T-shirts 1000 1000 Rice (Intons) O 750 T-shirts and 750 tons of rice. O 500 T-shirts and 1000 tons of rice. O1500 T-shirts and 1500 tons of rice. O1000 T-shirts and 500 tons of rice. O1000 T-shirts and 1500 tons of rice. 500 0 United States 500 1000 Rice (In tons) Refer to Exhibit 2.1, which shows the production for rice and t-shirts for two countries: Costa Rica and the United States. Assume exactly country produces half of its total production in each good and they are the only producers of T-shirts and rice. What is the total production of T-shirts and rice?arrow_forwardThe nominal U.S. GDP per capita was about $23,954 in 1990 and $48,375 in 2010. The GDP deflator of 2010 against 1990 was about 1.5159. What is the average annual growth rate of real GDP per capita during 1990-2010 approximately? O 1.44% O 2.33% O 2.02% O 1.98%arrow_forward
- 6. LO 2 Suppose that z, the marginal product of efficiency units of labour, increases in the endogenous growth model. What effects does this have on the rates of growth and the levels of human capital, consumption, and output? Explain your results.arrow_forwardA country faces diminishing marginal returns when increasing it's capital stock. If this country added 1,000 units of capital last year and saw their GDP rise by $500 per person, what would you expect to happen if they had added 2,000 units of capital instead? O GDP would increase by another $500 per person O GDP would increase by less than another $500 per person O GDP would increase by more than another $500 per person O It is impossible to tell what would happen What is a potential downside of using patents to promote the creation of new technology? Without a market test, patents might be given to technology which ends up being useless. O Government money may be directed towards unproductive goals. It slows the spread and development of those ideas by restricting competition. They prohibit competition forever. What is the law of diminishing marginal returns?arrow_forwardQUESTION 11 Using the Rule of 70, a country will roughly double its GDP in thirty-five years if its annual growth rate is However, if its annual growth rate is 5%, its GDP will roughly double in O 2 percent; 14 years O 7.5 percent; 10 years O 3.5 percent; 5 years O 2.5 percent; 25 yearsarrow_forward
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