Chinese economic growth is the outstanding feature of the world economic scene over the past two decades. In 2018, U.S. output was $20.5 trillion, and Chinese output in 2017was $13.5 trillion. Suppose that from 2017, the output of China grows at an annual rate of 7.9% per year, whereas the output of the United States grows from 2018 at an annual rate of 2.2% per year. Using these assumptions and a spreadsheet, calculate and plot U.S. and Chinese output from 2017 or 2018 over the next 25years. The level of U.S. output in 25 years will be $ trillion. (Round your response to two decimal places.) The level of Chinese output in 25 years will be $ trillion. (Round your response to two decimal places.) How many years will it take for China to have a total level of output equal to that of the United States? O A. 4.7 years O B. 20.5 years OC. 12.6 years O D. 6.3 years When China catches up with the United States total output, will residents of China have the same standard of living as U.S. residents? Explain. O A. No, because China has a larger population, output per person will be less in China than the United States. O B. No, China will produce more innovations and create more new goods relative to the technology in the United States. O C. Yes, because China will experience all of the same output innovations as the United States. OR. Yes, if both countries produce the same level of output, then residents will experience the same standard of living.
Chinese economic growth is the outstanding feature of the world economic scene over the past two decades. In 2018, U.S. output was $20.5 trillion, and Chinese output in 2017was $13.5 trillion. Suppose that from 2017, the output of China grows at an annual rate of 7.9% per year, whereas the output of the United States grows from 2018 at an annual rate of 2.2% per year. Using these assumptions and a spreadsheet, calculate and plot U.S. and Chinese output from 2017 or 2018 over the next 25years. The level of U.S. output in 25 years will be $ trillion. (Round your response to two decimal places.) The level of Chinese output in 25 years will be $ trillion. (Round your response to two decimal places.) How many years will it take for China to have a total level of output equal to that of the United States? O A. 4.7 years O B. 20.5 years OC. 12.6 years O D. 6.3 years When China catches up with the United States total output, will residents of China have the same standard of living as U.S. residents? Explain. O A. No, because China has a larger population, output per person will be less in China than the United States. O B. No, China will produce more innovations and create more new goods relative to the technology in the United States. O C. Yes, because China will experience all of the same output innovations as the United States. OR. Yes, if both countries produce the same level of output, then residents will experience the same standard of living.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Over the last two decades prior to 2018, which of the following ways has China used to raise its output per person? (Check all that apply.)
O A. Raised the level of taxes in the economy
O B. Increased capital per person
O C. Created large amounts of new technology
O D. Imported large amounts of technology from other countries
O E. Reduced the amount of foreign firms allowed to operate within its borders
The United States
to increase output per person and raise its standard of living.
Do you think Chin
on) provides a model for developing countries to follow?
O A. Yes, becau
could use the exact same methods as China
per person.
O B. No, becaus
r the domestic economy.
would not be able to use the same methods as China
O C. Yes, becau
I new sources of natural resources.
O D. No, most developing countries cannot import technology, and it is difficult for countries to create new technologies.
Transcribed Image Text:Chinese economic growth is the outstanding feature of the world economic scene over the past two decades.
In 2018, U.S. output was $20.5 trillion, and Chinese output in 2017was $13.5 trillion. Suppose that from 2017, the output of China grows at an annual rate of 7.9% per year, whereas the output of the United States grows from 2018 at an
annual rate of 2.2% per year.
Using these assumptions and a spreadsheet, calculate and plot U.S. and Chinese output from 2017 or 2018 over the next 25years.
The level of U.S. output in 25 years will be $ trillion. (Round your response
two decimal places.)
The level of Chinese output in 25 years will be $ trillion. (Round your response to two decimal places.)
How many years will it take for China to have a total level of output equal to that of the United States?
O A. 4.7 years
O B. 20.5 years
O C. 12.6 years
O D. 6.3 years
When China catches up with the United States in total output, will residents of China have the same standard of living as U.S. residents? Explain.
No, because China has a larger population, output per person will be less in China than the United States.
O B. No, China will produce more innovations and create more new goods relative to the technology in the United States.
O C. Yes, because China will experience all of the same output innovations as the United States.
O D. Yes, if both countries produce the same level of output, then residents will experience the same standard of living.
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