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Suppose that real GDP per capita of a rich country is $40,00

Paper help Economics Suppose that real GDP per capita of a rich country is $40,00

Economics

Suppose that real GDP per capita of a rich country is $40,00

Suppose that real GDP per capita of a rich country is $40,000. Real GDP per capita in a poor count… Show more Suppose that real GDP per capita of a rich country is $40,000. Real GDP per capita in a poor country is $10,000. Suppose that rate of growth of GDP per capita in the rich country is 3.6% per year and in the poor country is 7.2% per year. Using the rule of 72, calculate how many years it will take for real GDP per capita in the poor country to catch up with GDP per capita in the rich country? A %u2013 10 years B %u2013 20 years C %u2013 30 years D %u2013 40 years Economic systems that have achieved the highest levels of development have been A- market systems. B- Centrally planned systems. C- Socialist systems. D- Command economies. A country%u2019s rate of GDP growth is 7% per year. If real GDP per capita increases by 3%, at what rate is its population changing? A- population has increased by 10% B- population has increased by 4%. C- population has decreased by 2.33% D- population has decreased by 4% A factor critical to economic growth is A- increased saving rates. B- increases in human consumption C- reduced dependence on imports D- technological change that increases labor productivity To facilitate an international comparison of standards of living, the World Bank compares incomes and converts currencies to dollars on the basis of purchasing power. This measure is reported in: A- U.S. dollars. B- B- a trade-weighted dollar. C- C- international dollars. D- Real U.S. dollars, that is, adjusted for inflation. The determinants of economic growth include all of the following except: A- technological improvement B- growth in physical capital C- growth in human capital D- growth in money supply The skills, training, and education possessed by workers contribute to economic growth: A- by increasing saving. B- By increasing the quality of labor C- By increasing the quantity of labor D- By increasing real wages. If a nation%u2019s real GDP grows at approximately 3.4% per year and its population doubles in 120 years, calculate the approximate rate of change in per capital real GDP. A- 0.6% per year B- 2.8% per year C- 3.4% per year D- 4% per year Which of the following is a common feature of economies such as South Korea, Taiwan, Hong Kong, Singapore, Chile that have achieved significant gains in economic growth? A- abundant exportable natural resources B- the existence of a market economy C- a low degree of government involvement in the provision of housing, health care, and education D- heavy reliance on foreign investments Use the rule of 72 to determine how long it takes for real GDP to double if real GDP grows at 3% per year. A- 12 years B- 24 years C- 36 years D- 72 years Dependency theory posits that A- the lack of free trade between developed countries and poor countries has hurt the poor countries. B- The cause of the low levels of development in poor countries is caused by their reliance and dependence on developed countries. C- All countries follow the same predetermined paths to development, starting from import substitution strategy to export-led growth D- Rich nations that are not endowed with natural resources are dependent on poor resource-rich countries for the former%u2019s consumption goods Which of the following events will shift the long-run aggregate supply curve? A- a decrease in participation by women in the labor force B- an increase in the economy%u2019s general price level C- a liberal immigration policy that welcomes foreign workers D- a decrease in the average work week from 40 hours to 36 hours The rate of economic growth per capita in Mamoogia from 1996 to 2000 was 1.8% per year, while in Kennan, over the same period it was 4.5%. In 2000, per capita real GDP was $28,900 in France and $12,700 in Kennan. Assume the growth rates for each country remain the same. Which country will have a higher level of potential output in 2040? A- Kennan B- Mamoogia C- Their potential output will be the same D- It will depend on the rate of population growth in each country. The determinants of economic growth include all of the following except: A- technological improvement. B- Improvements in the quality of factors of production C- A stable price level D- Increases in the quantity of factors of production Economists do not use actual values of real GDP to measure economic growth because A- real GDP holds price level constant, but in reality price level changes from year to year. B- Changes in real GDP could be due to fluctuations in the level of economic activity C- Economic growth encompasses more than just growth in output D- Changes in real GDP do not provide any information about income distribution Suppose that real GDP per capita of Monrovia is $30,000. RGDP per capita in Westova is $15,000. Suppose that rate of growth of real GDP per capita in Monrovia is 3.17% per year and in Westova it is 6.34% per year. Using the rule of 72, calculate how many years it will take for RGDP per capita in Westova to catch up with RGDP per capita in Monrovia. A- approximately 11 years B- approximately 23 years C- approximately 34 years D- approximately 46 years Data from most industrialized countries show that countries with high investment rates (as a percentage of GDP) tend to be countries A- with the highest rates of inflation B- with the most unequal income distribution C- with high rates of economic growth D- with the lowest rate of national saving Dependency theory assumes that export industries in a poor country have small multiplier effects throughout the rest of the economy. Which of the following is a policy implication of this assumption? A- Trade based on comparative advantage cannot benefit poor nations. B- Governments of poor nations should take whatever steps are necessary to prevent the repatriation of profits earned by multinational corporations operating in their countries. C- Production should be undertaken by the public sector and not the private sector D- These countries should pursue policies of self-reliance such as import-substitution policies rather than export-led policies. Advocates of dependency theory assert that A- poor countries are hampered from participating in free trade because of a lack of transportation infrastructure. B- The high rate of poverty in poor countries is attributed to underdeveloped markets and the lack of property rights C- Trade based on comparative advantage benefits developed countries at the expense of poor countries D- The key reason why poor nations have been slow to industrialize is because of persistent misallocation of resources. A developing country, sometimes referred to as a third-world country, is a country A- that is a low- or middle-income country B- that is a low-income country but not a middle-income country C- where at least 40% of its population live below the international poverty line D- characterized by a higher rate of population growth. • Show less

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