Principles Of Economics, Student Value Edition
12th Edition
ISBN: 9780134079288
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: Prentice Hall
expand_more
expand_more
format_list_bulleted
Question
Chapter 31, Problem 1.3P
To determine
Annual growth rate in real
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
According to economists, productivity can be increased by
Group of answer choices
- improving the education of workers
- raising minimum wages
- raising union wages
- restricting trade with the foreign countries
All values are 2005 dollars.
Part a) Calculate the growth of GDP/capita in each column.
Part b) Calculate the average annual growth in GDP/capita for japan, uk, and USA from 1980 to 2010 using the growth formula in the image. In the growth function, t is the current time period, t-j is the original time period, and g is the annual growth rate.
Part c) In parts a and b, are the calculated values for nominal gdp/capita or real gdp/capita. Explain why.
Which of the following is NOT a reason why middle-income countries in the east have experienced rapid growth rates?
Group of answer choices
The countries developed abundant new technologies which drove growth
These countries had a strong policy structure that supported human capital investments
These countries encouraged participation in the world markets
These countries accrued larger savings and invested it domestically
Chapter 31 Solutions
Principles Of Economics, Student Value Edition
Knowledge Booster
Similar questions
- The following table shows real GDP per capita for Canada, Taiwan, and Chad between 1970 and 2000. All figures are in 1998 U.S. dollars. Compare the data for Canada and Taiwan between 1970 and 1980. During this period, _______ (options: Canada, Taiwan) had a higher level of real GDP per capita, while __________ (options: Taiwan, Canada) experienced a higher growth rate in real GDP per capita. Convergence theory predicts that poor countries will grow more quickly than rich countries. Which one of the following is a reason for this? A. Poor countries tend to have higher birth rates than rich countries. B, Copying existing technologies is less expensive than developing them independently. C. Rich countries devote a large fraction of their GDP to helping poor countries.arrow_forwardIn the countries of South Asia in 1992, only 56 young women were enrolled in secondary school for every 100 young men. Describe two ways in which greater educational opportunities for young women could lead to faster economic growth for these countries.arrow_forwardSuppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run output per capita will be greater in B than in A. economic growth will be higher in A than in B. more information is needed to answer this question. output per capita will be greater in A than in B.arrow_forward
- To increase growth, governments should do all of the following except: encourage saving and investment. encourage research and development. promote free trade. encourage foreigners to invest in your country. nationalize major industries.arrow_forwardPlease no written by hand Which of the following arguments favour the convergence theory? (Select all applicable answers.) a. Developing countries can learn from the mistakes and successes of developed countries. b. Developing countries tend to have more innovations. c. Technological advancement will help developed countries escape the law of diminishing returns. d. The law of diminishing returns implies that the more developed countries grows more slowly.arrow_forwardIn the period of 1950-1973 the GDP average growth rate reached 9.3 % in Japan and approximately 4 % in USA. How this huge difference may be explained? Your arguments must be based on the growth theory and on the levels of GDP per capita both in Japan and USA in 1950 shown in the Madison table.arrow_forward
- Which of the following is true of the growth in the U.S. economy from 1950 to 2007? Growth resulting from technology > growth resulting from human capital > growth resulting from physical capital Growth resulting from technology > growth resulting from physical capital > growth resulting from human capital Growth resulting from physical capital > growth resulting from technology > growth resulting from human capital Growth resulting from human capital > growth resulting from technology > growth resulting from physical capitalarrow_forwardWhich of the following statements is most accurate about advanced economies? A. Economies experience a positive growth trend over the short run but experience significant variability in the long run. B. Economies experience a positive growth trend over the long run but experience significant variability in the short run. C. Economies experience positive and stable growth over both the long run and short run. D. Economies experience little long-run growth in output but can experience significant growth in the short run.arrow_forwardQ4. Which of these statements best describes the speed of convergence between high income countries and the rest of the world? (Pick 1 answer) A. Convergence will occur over a period of several decades. B. Convergence will occur in 1-2 years. C. Convergence will occur in 3-5 years. Q12. In macroeconomics, the connection from inputs to outputs for the entire economy is called? (Pick 1 answer) A. an aggregate production function B. human capital C. physical capitalarrow_forward
- Which one of the following is the most accurate description of growth theory? A) Growth theory tries to predict long-run growth rates of actual economies. B) Growth theory studies only the proximate causes of growth such as capital and productivity. C) Growth theory tries to explain both the causes and consequences of economic growth in the long-run. D) The main objective of growth theory is to generate policy advise for governments.arrow_forwardWhich of the following is correct? Question options: a) A decrease in the productivity of labour leads to economic growth. b) An increase in the quantity of labor always leads to economic growth. c) Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. d) Third World countries are rich in human capital.arrow_forwardEast Asian countries grew at fast rates because they save and invest an unusually high percentage of their GDP. They started off as poor relative to their steady state They use their resources efficiently. They have stable property rights. All of the above. Which of the following statements best describes the rate of growth in productivity (TFP) in the United States since 1950? Productivity growth has been steady. Productivity has been growing more slowly every decade. Productivity grew quickly in the 1950s and 1960s, more slowly from the early 1970s through 1995, and then quickly again with a slowdown in recent years. Productivity grew slowly from the 1950s through the 1970s, and then began to accelerate, probably due to advances in computer technology. Productivity has been growing more quickly every decade since World War II Suppose that the money supply will grow by 20% in Argentina over the next 10 years. Velocity is constant. Real income will grow at 3%. The inflation…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you