Question

Which is (are) TRUE? I. The rule of 70 states that if the annual growth rate of GDP per capita is x percent, it will take (70 ÷ x) years for it to triple. II. For most of recorded human history, there was no long-run growth in real per capita GDP. III. Economic growth refers to the growth rate of nominal per capita GDP.

II and III only
	b.	II only
	c.	I only
	d.	I and III only

1

Answer 1

First statement is false because the rule of 70 states that it will take 70/x years to double investment but not triple and that is the reason why it is false

third statement is false because economic growth refers to growth rate of real GDP per capita and not nominal GDP per capita

Therefore (b,c) are wrong

However for most of the recorded human history there was no long run real GDP per capita growth and this is because of the fact that the development has been there but in one form of the other the scarce resources have been depleting so that they have to switch for more expensive resources as a result of which is increased income is used for the building of new resources as a result of which ultimately the growth isn't there on the whole

Therefore (a) II only is the answer to this question