The figure shows the relationship between the Gini coefficient and annual average GDP per capita growth. Which of the following is a likely factor that drives economic growth? 3.0 High performers Luxembourg Line drawn arbitrarily 2.5 Norway • Austria Finland 2.0 • UK • France Canada Australia • Italy Belgium Germany US Sweden . Netherlands 1.5 Denmark Low performers 1.0 Switzerland 0.5 0.0 0.20 0.25 0.30 0.35 0.40 Long-term average inequality in disposable income (Gini coefficient) O Very unequal societies spend comparatively large amounts on creating and maintaining secure environments for the well-off. These resources would have higher productivity if redeployed elsewhere. O Cheap labour. O High levels of cooperation and trust. O Policies that enhance the endowments of the poor (e.g. education and health services) may have a greater impact on productivity than pecuniary incentives. Annual average GDP per capita growth, 1970–2012 (%)

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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The figure shows the relationship between the Gini coefficient and annual average GDP per capita
growth. Which of the following is a likely factor that drives economic growth?
3.0
High performers
Luxembourg
Line drawn arbitrarily
2.5
Norway
Austria
Finland
2.0
• UK
Belgium •
Germany
France
US
Sweden
Netherlands
Canada Australia Italy
1.5
Denmark
Low performers
1.0
Switzerland
0.5
0.0
0.20
0.25
0.30
0.35
0.40
Long-term average inequality in disposable income (Gini coefficient)
O Very unequal societies spend comparatively large amounts on creating and maintaining secure environments
for the well-off. These resources would have higher productivity if redeployed elsewhere.
O Cheap labour.
O High levels of cooperation and trust.
O Policies that enhance the endowments of the poor (e.g. education and health services) may have a greater
impact on productivity than pecuniary incentives.
Annual average GDP per capita growth,
1970-2012 (%)
Transcribed Image Text:The figure shows the relationship between the Gini coefficient and annual average GDP per capita growth. Which of the following is a likely factor that drives economic growth? 3.0 High performers Luxembourg Line drawn arbitrarily 2.5 Norway Austria Finland 2.0 • UK Belgium • Germany France US Sweden Netherlands Canada Australia Italy 1.5 Denmark Low performers 1.0 Switzerland 0.5 0.0 0.20 0.25 0.30 0.35 0.40 Long-term average inequality in disposable income (Gini coefficient) O Very unequal societies spend comparatively large amounts on creating and maintaining secure environments for the well-off. These resources would have higher productivity if redeployed elsewhere. O Cheap labour. O High levels of cooperation and trust. O Policies that enhance the endowments of the poor (e.g. education and health services) may have a greater impact on productivity than pecuniary incentives. Annual average GDP per capita growth, 1970-2012 (%)
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