EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 26, Problem 3RQ
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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
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.
A 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?
Chapter 26 Solutions
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- On the following scatter plots, the 1960 real per capita GDP is on the x-axis and the y-axis represents the average economic growth rate between 1960 and 2017. Which one shows the strongest evidence in favour of convergence? O 2.5 1960-2017 growth (percent) 2.0 1.5 1.0 3 2 5 5 Convergence 10 1960 GDP (constant dollars per person) Convergence 15 10 15 1960 GDP (constant dollars per person) 20 20arrow_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_forwardIn 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%arrow_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_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_forwardQuestion 1 If a country's GDP is growing at 5% a year, how many years does it take for the country's GDP to double? 13.8 O 14.2 O 15.2 O 18.2arrow_forward
- Question 2 Suppose that the production function is Y = 10K5L5, the population growth rate is 15 percent and the depreciation rate is 5 percent. What is the steady state level of k if the economy saves 30 percent? O 400 O 225 100 O 1000 Question 3 Suppose that the production function is Y 10K SL5, the population growth rate is 15 percent and the depreciation rate is 5 percent. What is the steady state level of y if the economy saves 30 percent? 250 350 150 O 450arrow_forward6. 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_forwardIf real GDP per capita in the United States is $5,000, what will real GDP per capita in the United States be after 3 years if real GDP per capita grows at an annual rate of 2%? O $4,520 O 55,000 $5,306 O $5,560arrow_forward
- Using the table, what is the real GDP growth from 2001 to 2002? O 50% YEAR O 1.25% 2001 2002 O-11.11% QUANTITY APPLES 100 150 BANANAS APPLES 40 $0.50 60 $1.00 PRICES BANANAS $2.50 $1.00arrow_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_forwardIf Real GDP was $9,542 billion in year 2 and it had been $9,300 billion in year 1, what was the approximate economic growth rate during this time period? Select one: O a. 9.7 percent O b. 2.4 percent O c. 3.5 percent O d. 2.6 percentarrow_forward
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