Principles of Economics Plus MyLab Economics with Pearson eText (2-semester access) -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134426846
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 31, Problem 2.1P
To determine
Role of new technology in a developing country.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Which of the following statements best describes the relationship between Economic Growth and Literacy Rates ?
A.
Literacy Rates decline as Economic Growth improves because Education is less useful in a developed economy.
B.
Increased Literacy initially stimulates Economic Growth by improving Labour Productivity but declines as the Opportunity Cost of Education increases with long-term Economic Growth.
C.
Increased Literacy stimulates Economic Growth by increasing Labour Productivity; People consume more Education as the Economy continues to grow.
D.
There is no correlation between Economic Growth and Literacy Rates.
Fill in the blank
Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000.
How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP?
India's per-capita GDP must double ________________________ times.
Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate.
Fill in the third blank.
Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000.
How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP?
India's per-capita GDP must double __________ times.
Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate.
Doubling time: ______________________ years
How many years will it take for India to reach Italy’s current level of GDP per capita?
It will take ________________ years for India to reach Italy's current level of GDP per capita.
Chapter 31 Solutions
Principles of Economics Plus MyLab Economics with Pearson eText (2-semester access) -- Access Card Package (12th Edition)
Knowledge Booster
Similar questions
- Explain how high population growth could complicate or hamper development in an economy or countryarrow_forwardThe key distinction between the views of Thomas Malthus and Esther Boserup on the relation between population growth and technological innovation is:a) Malthus and Boserup both regard population growth as exogenous in driving innovation, but Boserup emphasizes the ‘passion between the sexes’, while Malthus emphasizes human ingenuity b) Malthus and Boserup both regard population growth as exogenous in driving innovation, but Malthus emphasizes the ‘passion between the sexes’, while Boserup emphasizes human ingenuity c) Malthus regards population growth as exogenously driving technological innovation, while Boserup regards population growth as an endogenous response to innovationd) Boserup regards population growth as exogenously driving technological innovation, while Malthus regards population growth as an endogenous response to innovationarrow_forwardFill in the second blank. Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000. How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP? India's per-capita GDP must double __________ times. Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate. Doubling time: ______________________ yearsarrow_forward
- The table below shows the level of real GDP and real GDP per capita growth rates for a select set of countries for the year 2016. Determine the number of years it will take for the standard of living to double in each country. Instructions: Round your answers to one decimal place. Growth Rates and the Rule of 72 Country Real GDP (millions) Growth Rate of Real GDP per Capita (percent) Number of Years for Standard of Living to Double Canada $1,445,260 0.8% Madagascar 37,297 1.8 Philippines 843,692 5.1 Sweden 488,759 2.8 United States 12,341,233 0.2arrow_forwardWhich of the following statements is true with respect to the economic effects of controlling population growth? Multiple Choice A. Developing nations tend to have lower fertility compared to developed nations. B. Lower male-female ratios favor higher fertility rates. C. A decline in fertility rate is a function of economic prosperity. D. Fertility rates increase proportionately to the rate of economic growth. E. Higher population growth rates have resulted in increased global trade.arrow_forwardList the areas where government policy can help economic growtharrow_forward
- The great 18th- century economist Adam Smith wrote, “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things.” Explain how each of the three conditions Smith describes would promote economic growth.arrow_forwardIn your opinion, why do some countries experience sustained levels of high growth that propel them into the ranks of the rich while others stagnate seemingly in perpetuity?arrow_forwardSome resource-rich countries have succeeded in converting resource wealth into longterm and equitable economic development, while many others have not. Natural resources have played a fundamental role in the growth of several industrialized economies, including Germany and the United Kingdom, where coal and iron ore deposits were a precondition for the Industrial Revolution. The United States was the world’s leading mineral economy from the mid-nineteenth to the mid-twentieth century and in the same period became the world’s leader in manufacturing (van der Ploeg 2011). More recently, countries such as Botswana, Chile, and Norway have used abundant oil and mineral resources as the foundation for economic growth. Discuss in depth, based on your understanding of the various sources of fiscal risks what complicates fiscal management in resource rich countries. Taking Zambia as a case study, suggest ways in which these risks can be managed.arrow_forward
- If a country experiences real economic growth of 12% per year, it can go from being one of the poorest to one of the richest in Question 47 options: one generation. In the last couple of decades China’s growth rate has been higher than 12%. one generation. However, in the last couple of decades not even China’s growth rate has been this high. three generations. In the last 75 years China’s growth rate has been higher than 12%. three generations. However, in the last couple of decades not even China’s growth rate has been 12%.arrow_forwardConsider two developed and developing countries, the population growth rate of developed countries is 2 percent per year and saving rate of 30 percent. The developing country has a population growth rate of 5 percent and saving rate of 10 percent. Suppose that initial technology of the developed country is 10 times higher than that of the developing country and that both countries have the same productivity growth and depreciation rate: g - 0.02 and 5=0.03. Assume that a - 1/ 3. In a steady state, how much is the developed country's GDP per capita larger than the developing country?arrow_forward
arrow_back_ios
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