MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Question
Chapter 22, Problem 5RQ
To determine
The amount of savings per capita in DVC and IAC.
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- Compare a hypothetical DVC with a hypothetical IAC. In the DVC, average per capita income is $500 per year. In the IAC, average per capita income is $40,000 per year. If both countries have a savings rate of 10 percent per year, the amount of savings per capita in the DVC will be per person per year, while in the IAC it will be per person per year. a. $50; $4,000. b. $5; $400. c. $450; $36,000. d. None of the above.arrow_forwardAssume that a leader country has real GDP per capita of $80,000, whereas a follower country has real GDP per capita of $40,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 5 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country? Instructions: Enter your answer as a whole number. yearsarrow_forwardStudy the cartoon below and answer the guestions that follow. Can't you third world countries keep on growing and growing? CHINA USA Actually, now we've joined the first world countries and this will bring better cooperation and development amongst the countries of the world. [Source: Adapted: Nicholsoncartanoons.com.au] Name any ONE benefit that third world countries may derive from joining first world countries. 3.3.1 Which country from the cartoon above has joined the first world countries? 3.3.2 3.3.3 Briefly describe the term developed countries. What can developing countries do to reduce their dependence on developed countries? 3.3.4 3.3.5 Why is infrastructure necessary for economic growth? Differentiate between absolute and comparative advantages. How would South Africa benefit from its association with BRICS countries? 27 Jam 14 Wachsheenarrow_forward
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- Refer to the graph. According to the economic concept of catch-up, which of the following is CORRECT? A. Richer countries should grow more quickly and will be at point B. B. Richer countries should grow more slowly and will be at point A. C. Poorer countries should grow more quickly and will be at point A. D. Poorer countries should grow more slowly and will be at point B. G Growth in real GDP per capita A Catch-up line B Initial level of real GDP per capitaarrow_forwardThe source for this dataset is The World Bank. data.worldbank.org/indicator/NY.GDP.PCAP.CD(a) In 2022, what are the 6 richest countries in the world?(b) In 2022, what are the 6 poorest countries in the world(c) In 2022, how many times richer is the average person of the richest country thanthe average person of the poorest country in the world?2. For the countries that have data for 1960, compute the average ANNUAL growth rate ofper capita GDP between 1960 and 2022.(a) What 5 countries have grown the MOST over this period? What are their growthrates?(b) What 5 countries have grown the LEAST over this period? What are their growthrates?3. Write down some of your thoughts about WHY some countries are rich and some countriesare poor.arrow_forwardScenario: Country A has one of the highest real GDP while Country B has one of the highest real GDP per capita in the world respectively. Question - What does this tell us, about the well-being of the residents of Country A and B? Give an example of a country to support your answer.arrow_forward
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