Question

Economic growth is defined as: a. the percent change in per capita income, or GDP b....

Economic growth is defined as:

a.

the percent change in per capita income, or GDP

b.

changes in technology

c.

the difference between the nominal and real GDP

d.

the percent change in prices, or GDP

e.

the decline in the unemployment rate

Assume that both Japan’s and the United States’ average annual per capita GDP growth rates are 2 percent per year, and both countries began with an initial per capita GDP of $1,000. However, the United States has been growing since 1910 and Japan only since 1960. In 2010, the United States would have been ________ than Japan.

a.

0.269 times poorer

b.

99 times richer

c.

4,555 times richer

d.

0.37 times poorer

e.

2.69 times richer

Which of the following is/are the benefit(s) of economic growth?

a.

increases in life expectancy

b.

reductions in infant mortality

c.

higher incomes

d.

an expansion in the range of goods and services available

e.

All of these answers are correct.

Homework Answers

Answer #1

1. a. the percent change in per capita income, or GDP
(Economic growth is the percentage rate of change in per capital income or real GDP)

2. e. 2.69 times richer
(We use the compound interest formula to find per capita GDP in 2010 for the two countries.
A = P[1 + (r/n)]^(nt)
where P = $1000 for both countries (Principal amount); r = 2% = 0.02 (rate of interest); n = 1 (number of times compounding is done every year); t = 100 for US (number of years) and 50 for Japan.
US: A = 1000[1 + (0.02/1)]^(1*100) = 1000[(1.02)^100] = 1000*(7.244646) = 7244.65
Japan: A = 1000[1 + (0.02/1)]^(1*50) = 1000[(1.02)^50] = 1000*(2.691588) = 2691.59
7244.65/2691.59 = 2.69 times richer)

3. e. All of these answers are correct.
(With economic growth all the options given are achieved)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Economists tend to focus on real GDP per capita as their primary way of comparing living...
Economists tend to focus on real GDP per capita as their primary way of comparing living standards among countries. But they are also aware that real GDP per capita does not capture many factors that affect the quality of life. Go to the CIA World Factbook's rank-order page at go to https://www.cia.gov/ (Links to an external site.)Links to an external site., select Library, Publications, The World Fact Book, and Guide to Country Comparisons. Scroll down to the People section. Click...
What will happen to the annual rate of growth of per capita real GDP if the...
What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes​ down? A. The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP. B. It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita...
1. True or false? a) GDP per capita is a measure of economic prosperity. b) High...
1. True or false? a) GDP per capita is a measure of economic prosperity. b) High growth rates in GDP per capita can be accompanied by high inflation. c) Nominal wages are adjusted for inflation, real wages are not. d) A mismatch of skills generally results from cyclical unemployment. e) The Phillips curve suggests negative relationship between inflation and GDP f) A trade deficit is acceptable in the short run, but is troublesome in the long run.
1. Suppose Gdp per capita is $2500 in 1912 and $2550 in 1913. The growth rate...
1. Suppose Gdp per capita is $2500 in 1912 and $2550 in 1913. The growth rate of GDP per capita from 1912 to 1913 is a. 2 percent b. 50 percent c. 0.02 percent d. 5 percent 2. Economic growth refers to an increase in ______. a. pirce b. tax rate c. population d. GDP per capita 3. GDP is a measure of ______, not a measure of ______. a. production; sale to cunsumers b. sales to customers;production c. sales...
An increase in real GDP per capita is the strict definition of economic growth that serves...
An increase in real GDP per capita is the strict definition of economic growth that serves to A) increase living standards.B) increase the population.C) decrease inflation.D) increase the money supply.
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions...
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2005 dollars), and population (in thousands) of the United States in 1960, 1970, 1980, 1990, 2000, and 2010. The U.S. price level rose consistently over the period 1960–2010. Year Nominal GDP (billions of dollars) Real GDP (billions of 2005 dollars) Population (thousands) 1960 $526.4 $2,828.5 180,760 1970 1,038.5 4,266.3 205,089 1980 2,788.1 5,834.0 227,726 1990 5,800.5 8,027.1 250,181 2000 9,951.5 11,216.4 282,418 2010...
Economic growth is defined as: Question 10 options: 1) the increase in employment rate. 2) the...
Economic growth is defined as: Question 10 options: 1) the increase in employment rate. 2) the percent change in per capita income, or GDP. 3) the percentage change in nominal GDP. 4) All of the above.
After several years of solid growth in real per capita GDP, economic growth in Brazil slowed...
After several years of solid growth in real per capita GDP, economic growth in Brazil slowed substantially from 2012 to 2016, and then rebounded in 2017. The 2017 Brazilian data below are from the World Bank database called World Development Indicators. Nominal GDP Growth Rate GDP Deflator Growth Rate Population Growth Rate 14.58% 3.79% 0.79% A. What was the rate of economic growth for Brazil in 2017? Give your answer to one decimal if necessary. B. If the price level...
From 2009 to 2010, per capita real gross domestic product (GDP) in the United States grew...
From 2009 to 2010, per capita real gross domestic product (GDP) in the United States grew by 2.8 percent. Given that prices increased by 1.5 percent and the population grew by 1 percent. Assume that the US nominal GDP growth rate is constant, how long will it take for the nominal GDP to double?
Use the H-augmented Solow model to determine the a) instantaneous impact on GDP per capita, b)...
Use the H-augmented Solow model to determine the a) instantaneous impact on GDP per capita, b) instantaneous impact on consumption per capita, c) long-run impact on GDP per capita, d) long-run impact on consumption per capita, e) impact on long-run GDP per capita growth rate, and f) impact on long-run GDP growth rate of a permanent and instantaneous increase in the fraction of national resources devoted to investment in human capital, sh. Assume the country begins at its steady state...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT