2. Here, again, are the GDP per capita numbers for a number of countries shown in class. But rather than focus on welfare now, let us consider the effects of differences in growth rates on how the GDP ranking between countries evolves over time. GDP and Welfare across Countries, 2007 Per capita GDP 100.0 Country United States France United Kingdom Germany Italy Japan Hong Kong Singapore South Korea Mexico Russia Brazil China Indonesia India Botswana South Africa Malawi 74.2 81.7 78.0 69.8 75.2 84.0 112.6 57.0 28.4 33.1 17.8 12.6 7.8 6.8 23.4 17.0 1.2 Welfare Life expectancy 100.0 110.5 104.6 98.3 92.9 86.3 63.9 52.4 41.0 17.7 16.8 12.0 5.0 4.5 3.2 2.4 2.4 0.3 1.000 77.8 1.187 80.8 1.098 2 79.4 1.103 79.5 1.213 81.3 1.291 82.5 1.272 82.4 1.148 80.4 1.082 0.913 76.0 0.561 67.5 0.753 72.1 0.797 72.6 0.624 67.7 0.520 64.1 0.215 52.1 0.194 51.0 0.295 50.9 Decomposition CIY Leisure Inequality 1.000 1.000 1.000 0.814 0.801 0.651 0.953 1.175 1.121 0.859 1.067 0.832 0.822 0.870 1.168 0.708 0.857 0.892 1.143 0.848 0.776 1.022 0.726 0.854 1.041 0.695 0.814 0.721 0.830 0.587 0.751 0.503 0.806 0.409 0.744 0.740 0.846 0,603 0.755 0.979 0.923 0.797 0.778 0.915 1.024 0.745 0.809 0.933 0.963 0.784 0.781 0.654 0.891 0.532 0.769 0.935 0.761 0.871 1.053 0.709 0.818 0.546 0.878 0.444 0.765 0.971 1.100 0.790 0.833 1.177 0.803 0.958 0.743 0.974 0.793 0.442 1.070 0.538 1.126 0.431 1.077 0.525 1.000 0.651 1.000 0.651 1.000 0.651 1.061 0.552 0.756 0.992 0.967 0.701 1.000 0.651 0.851 0.863 1.010 0.636 0.988 0.669 1.000 0.651 0.672 1.104 0.878 0.827 (a) Suppose that the U.S. growth rate of real GDP/capita will equal what it has been over the past 100 or so years: about 2% per year. How long will it take U.S. GDP/capita to double? (b) Suppose that China will grow at the rate 6% per year over the foreseeable future (a rate that is lower than in its recent times). How long will it take China to double its GDP/capita? (c) Given the growth-rate projections above and the information in the table, can you figure out how long it will take China to surpass the U.S. in the international GDP/capita ranking?
2. Here, again, are the GDP per capita numbers for a number of countries shown in class. But rather than focus on welfare now, let us consider the effects of differences in growth rates on how the GDP ranking between countries evolves over time. GDP and Welfare across Countries, 2007 Per capita GDP 100.0 Country United States France United Kingdom Germany Italy Japan Hong Kong Singapore South Korea Mexico Russia Brazil China Indonesia India Botswana South Africa Malawi 74.2 81.7 78.0 69.8 75.2 84.0 112.6 57.0 28.4 33.1 17.8 12.6 7.8 6.8 23.4 17.0 1.2 Welfare Life expectancy 100.0 110.5 104.6 98.3 92.9 86.3 63.9 52.4 41.0 17.7 16.8 12.0 5.0 4.5 3.2 2.4 2.4 0.3 1.000 77.8 1.187 80.8 1.098 2 79.4 1.103 79.5 1.213 81.3 1.291 82.5 1.272 82.4 1.148 80.4 1.082 0.913 76.0 0.561 67.5 0.753 72.1 0.797 72.6 0.624 67.7 0.520 64.1 0.215 52.1 0.194 51.0 0.295 50.9 Decomposition CIY Leisure Inequality 1.000 1.000 1.000 0.814 0.801 0.651 0.953 1.175 1.121 0.859 1.067 0.832 0.822 0.870 1.168 0.708 0.857 0.892 1.143 0.848 0.776 1.022 0.726 0.854 1.041 0.695 0.814 0.721 0.830 0.587 0.751 0.503 0.806 0.409 0.744 0.740 0.846 0,603 0.755 0.979 0.923 0.797 0.778 0.915 1.024 0.745 0.809 0.933 0.963 0.784 0.781 0.654 0.891 0.532 0.769 0.935 0.761 0.871 1.053 0.709 0.818 0.546 0.878 0.444 0.765 0.971 1.100 0.790 0.833 1.177 0.803 0.958 0.743 0.974 0.793 0.442 1.070 0.538 1.126 0.431 1.077 0.525 1.000 0.651 1.000 0.651 1.000 0.651 1.061 0.552 0.756 0.992 0.967 0.701 1.000 0.651 0.851 0.863 1.010 0.636 0.988 0.669 1.000 0.651 0.672 1.104 0.878 0.827 (a) Suppose that the U.S. growth rate of real GDP/capita will equal what it has been over the past 100 or so years: about 2% per year. How long will it take U.S. GDP/capita to double? (b) Suppose that China will grow at the rate 6% per year over the foreseeable future (a rate that is lower than in its recent times). How long will it take China to double its GDP/capita? (c) Given the growth-rate projections above and the information in the table, can you figure out how long it will take China to surpass the U.S. in the international GDP/capita ranking?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:2. Here, again, are the GDP per capita numbers for a number of countries shown in class.
But rather than focus on welfare now, let us consider the effects of differences in growth
rates on how the GDP ranking between countries evolves over time.
GDP and Welfare across Countries, 2007
Per capita
GDP
100.0
Country
United States
France
United Kingdom
Germany
Italy
Japan
Hong Kong
Singapore.
South Korea
Mexico
Russia
Brazil
Chinal
Indonesia.
India
Botswana
South Africa
Malawi
74.2
81.7
78.0
69.8
75.2
84.0
112.6
57.0
28.4
33.1
17.8
12.6
7.8
6.8
23.4
17.0
1.2
Welfare Life expectancy
100.0
110.5
104.6
98.3
92.9
86.3
63.9
524
41.0
17.7
16.8
12.0
5.0
4.5
3.2
2.4
2.4
0.3
1.000
77.8
1.187
80.8
1.098
2
79.4
1.103
79.5
1.213
81.3
1.291
82.5
1.272
82.4
1.148
80.4
1.082
79.3
0.913
76.0
0.561
67.5
0.753
72.1
0.797
72.6
0.624
67.7
0.520
64.1
0.215
52.1
0.194
51.0
0.295
50.9
Decomposition
C/Y Leisure Inequality
1.000
1.000
1.000
0.814 0.801
0.651
0.953 1.175
1.121
0.776 0.859
1.022 1.067
0.832 0.822
0.870 1.168
0.708
0.857
0.892 1.143
0.848
0.726
0.854
1.041
0,695
0.814
0.721 0.830
0.587 0.751
0.503 0.806
0.409
0.740
0,603 0.755
0.979 0.923
0.744
0.846
0.797
0.915
0.778
1.024
0.745
0.809
0.963
0.933
0.784 0.781
0.654 0.891
0.532 0.769
0.935
0.974
0.761
0.793
0.871 1.053
0.709 0.818
0.546 0.878
0.444 0.765
0.971 1.100
0,790 0.833
1.177 0.803
0.958 0.743
0.442
1.070
0.538
1.126
0.431
1.077
0.325
1.000
0.651
1.000
0.651
1.000
0.651
1.061
0.532
0.756
0.992
0.967
0.701
1.000
0.651
0.851
0.863
1.010
0.636
0.988
0.669
1.000
0.651
0.672
1.104
0.878
0.827
(a) Suppose that the U.S. growth rate of real GDP/capita will equal what it has
been over the past 100 or so years: about 2% per year. How long will it take U.S.
GDP/capita to double?
(b) Suppose that China will grow at the rate 6% per year over the foreseeable future
(a rate that is lower than in its recent times). How long will it take China to
double its GDP/capita?
(c) Given the growth-rate projections above and the information in the table, can
you figure out how long it will take China to surpass the U.S. in the international
GDP/capita ranking?
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