Between 1970 and 2005, Chinaâ€™s GDP per capita grew at an average rate of 7.3% per year while GDP per capita in the US grew at an average rate of 2.2%. In 2005, US GDP per capita was $36,806 and Chinese GDP per capita was $5,955. Assuming that the two countries continue to grow at these rates, in what year will China overtake the US in terms of GDP per capita?

Between 1970 and 2005, Chinaâ€™s GDP per capita grew at an average rate of 7.3% per year while GDP per capita in the US grew at an average rate of 2.2%. In 2005, US GDP per capita was $36,806 and Chinese GDP per capita was $5,955. Assuming that the two countries continue to grow at these rates, in what year will China overtake the US in terms of GDP per capita?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

See similar textbooks

Related questions

Q: The International Property Rights Index (IPRI) scores countries based on the legal and political…

A: The Internation property rights Index (IPRI) measures 129 countries that offer an insight that is…

Q: Consider the following data for country A: Population (millions) Real GDP Country ($ billions) 50…

A: The gross domestic product(GDP) of an economy is defined as the market value of all final…

Q: Consider a country where per capita GDP (Y/L) is 1/4 of the one in the US and the capital per worker…

A: Per worker production function of the US: (Y/L) = A(K/L)1/3 Where the per capita GDP in the US is…

Q: ?Question 2.10: Calculate Growth Rate of Real Per Capita GDP Now suppose there are more goods and…

A: Step 1: Real GDP Per Capita:The average economic production per person, adjusted for inflation, is…

Q: 5 Country A produces GDP according to the following equation: GD and has a capital stock of 12,254.…

Q: Suppose that the GDP of California increases by 12% each year. How long will it take for the GDP of…

A: Gross Domestic Product: It is a measure of the total economic output of a country or region,…

Q: Consider a small island country whose only industry is printing. The following table presents…

A: Capital is a man-made resource used in the production function, to purchase other factors of…

Q: Three Irish sisters are thinking about emigrating in 1870. The options are going to the United…

A: d) The average growth rate, = (Absolute change/ Initial value)*100 = (New value- Initial value /…

Q: Real GDP per capita in the country of Arcadia grew from about $4,666 in 1900 to about $42,069 in…

A: The situation in which the overall flow of products and goods is calculated in the domestic market…

Q: According to the table, Canada has the eleventh-highest GDP among the countries with the largest…

A: Answer - By using the table given in the question -" GDP per capita is the gdp divided by…

Q: A country has a Cobb-Douglas production function given by: Y = AK0.5H0.1 If total factor…

A: Since you have posted multiple questions, we will solve the first question for you. If you want any…

Q: The following table shows real GDP per capita for Canada, Taiwan, and Chad between 1970 and 2000.…

A: Real GDP - is an adjusted GDP of inflation prices in contrast to nominal GDP. it is calculated by…

Q: Indicate which economy satisfies each of the following statements. Statement Austria Botswana…

A: Economic growth is related to the concept of standard of living. An important measure of economic…

Q: Suppose that the GDP of California increases by 8.0% each year. How long will it take for the GDP of…

A: Given The GDP growth rate is 8% per year in California. The formula of growth rate: g=YnY01n-1…

Q: Suppose that real GDP per person in Panama in 2017 was about $15,000 per person, while it was about…

A: Panama's real GDP per person in 2017 = $15,000 US real GDP per person in 2017 = $60,000 Real GDP per…

Q: = 5√K and has a capital Country A produces GDP according to the following equation: GDP stock of…

A: The calculation of the total final value of all the products and services produced within the…

Q: China invests almost 50 percent of its annual production in new capital compared to 15 percent in…

A: China is investing 50% of its annual production in new capital compared to 15% in the United States.…

Q: Consider two distinct countries, denoted as A and B. Initially, Country A had a per capita GDP of…

A: To determine which country will have a higher per capita GDP when t=35 time periods (years), we can…

Q: Suppose a country has a real GDP per capita of $68,000 and grows at a constant rate for the next 36…

A: GDP per capita is calculated by dividing the total gross value contributed by all producers who are…

Q: Capital per person in France is about 81 percent of the U.S. level and per capita income is about 79…

A: TFP assesses how effectively inputs like labor and capital are combined to generate output. It is a…

Q: Calculate the following using the Rule of 70: 3) How many years will Vietnam grow with a GDP of…

A: Rule of 70 implies that the time an economy takes to double it's GDP. Therefore, simply by computing…

Q: China GDP growth slows to 27-year low China's economic growth slowed to 6.2% in the second quarter,…

A: Real GDP growth rate in US being less than 3%, China has higher growth rate than US. However, since…

Question

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define

VIEW

Step 2: Ascertain the year of surpassing GDP per capita

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

In 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million. In 2000, Denmark had 3 GDP of 160 billion (measured in U.S. dollars} and a population of 5.3 million. By what percentage did Denmarks GDP per capita rise between 1980 and 2000?
In its recent report, The Conference Boards Global Economic Outlook 2015, updated November 2014 (http://www.conference-board.org/data/ globaloutlook.cfm), projects Chinas growth between 2015 and 2019 to be about 5.5%. International Business Times (http//www.ibtimes.com/us-exports-china-have rown-294-over-past-decade- 1338693) reports that China is the United States third largest export market, with exports to China growing 294 over the last ten years. Explain what impact China has on the U.S. economy.
If you observed a country with a rapidly growing trade surplus over a period of a year or so, would you be more likely to believe that the countrys economy was in a period of recession or of rapid growth? Explain.
An economy starts off with a GDP per capital of 12,000 euros. How large will the GDP per capita be if it grows at an annual rate of 3 for 10 years? 3 for 30 years? 6 for 30 years?
Does a trade surplus help to guarantee strong economic growth?
Retrieve the following data from The World Bank database (http //databank.worldbank. org/data/ home.aspx) for India, Spain, and South Africa for the most recent year available: â€¢ GDP in constant international dollars or PPP â€¢ Population â€¢ GOP per person in constant international dollars â€¢ Mortality rate, infant (per 1,000 live births) â€¢ Health expenditure per capita (current U.S. dollars) â€¢ Life expectancy at birth, total (years)
Create a table that identifies the macroeconomic policies for a high-income country, a middle-income country, and a low-income country
An economy starts off with a GDP per capita of 5,000. How large will the GDP per capita be if it grows at an annual rate of 2 for 20 years? 2 for 40 years? 4 for 40 years? 6 for 40 years?
In what way does comparing a countrys exports to GDP reflect its degree of globalization?
At one point Canadas GDP was 1,800 billion and its exports were 542 billion. What was Canadas export ratio at this time?