The following table shows the GDP per capita of various countries for the years 1960 and 2010 in PPP-adjusted 2005 dollars. The table also contains the implied growth rates, which show how much on average each country needed to grow each year to reach the 2010 level of GDP per capita starting from the 1960 level of GDP per capita. Use the table to answer the

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

The following table shows the GDP per capita of various countries for
the years 1960 and 2010 in PPP-adjusted 2005 dollars. The table also
contains the implied growth rates, which show how much on average each
country needed to grow each year to reach the 2010 level of GDP per capita
starting from the 1960 level of GDP per capita. Use the table to answer the
following questions.

1. Why have some countries reduced the gap between their incomes and
that of the United States and other countries failed to do so?

Implied (average)
annual growth
Country
GDP per Capita ($)
United States
Singapore
China
Kenya
Haiti
Ghana
1960
15,398
4,383
772
1,020
1,513
1,286
2010
41,365
55,862
7,746
1,247
1,410
2,094
2.00%
5.22%
4.72%
0.40%
-0.14%
0.98%
Transcribed Image Text:Implied (average) annual growth Country GDP per Capita ($) United States Singapore China Kenya Haiti Ghana 1960 15,398 4,383 772 1,020 1,513 1,286 2010 41,365 55,862 7,746 1,247 1,410 2,094 2.00% 5.22% 4.72% 0.40% -0.14% 0.98%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Growth Rate of GDP
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
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education