Which of the following best describes the idea of convergence?O A. Low-income countries are generally expected to grow more slowly than high-income countries.B. Low-income countries have started to grow too late and can never catch up to rich countries.C. Low-income countries will grow faster than rich countries and inevitably catch up.D. Low- and high-income countries will ultimately converge to the same democratic model of government.

All the countries in the long run reach their respective steady states.

Answered: Which of the following best describes…

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

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Which government policy promotes economic growth? O A. increasing the interest rate charged on student loans B. implementing a fiscal policy that increases inflation C. implementing a monetary policy that increases inflation O D. building infrastructure and providing public goods Reset Selection
Suppose that U.S. real GDP per capita is $50,000 and grows on average at 3% per year. How long will it take for U.S. real GDP per capita to double at this growth rate? If this growth rate continues, what will U.S. real GDP r capita be in 70 years? S Suppose that U.S. real GDP per capita is $50,000 and grows on average at 5% per year (rather than 3% a year) How long will it take for U.S. real GDP per capita to double at this growth rate? years (round to nearest year) If this growth rate continues, what will U.S. real GDP per capita be in 70 years? S years (round to nearest year)
What is the relationship between economic prosperity and democracy? O The probability that a new democracy is stabile is higher in more prosperous countries Economies in democratic states grow more rapidly than economies in non-democracies O The probably that a democracy is overthrown in a coup increases as prosperity goes up Authoritarian regimes are less dependent on economic prosperity for their survival than democracies
“Even if we [the government] were to marshal every single resource at our disposal, and engage on ahuge expenditure of public funds, we would not alone be able to guarantee employment to the millionsof people who are out of work”.and that“Without growth there will be no jobs, and without jobs there will be no meaningful improvement in thelives of our people
.
India's Economy Hits the Wall Just six months ago, India was looking good. Annual growth was 9%, consumer demand was huge, and foreign investment was growing. But now most economic forecasts expect growth to slow to 7%-a big drop for a country that needs to accelerate growth. India needs urgently to upgrade its infrastructure and education and healthcare facilities. Agriculture is unproductive and needs better technology. The legal system needs to be strengthened with more judges and courtrooms. Source: BusinessWeek, July 1, 2008 Explain potential sources for faster economic growth in India suggested in this news clip. Potential sources for faster economic growth in India include O A. increasing consumer demand because it increases real GDP O B. slowing the population growth rate because a slower population growth rate means that fewer consumption goods can be produced and more capital goods can be produced OC. announcing high economic growth forecasts because firms will produce the…
Which of the following is true about the sources of economic growth after the Civil War? a. Growth of the labor force and increased productivity became increasingly important sources. b. Productivity gains in cotton production and expansion of the use of land became increasingly important sources. c. Expansion of the use of land and capital became increasingly important sources. d. Economic growth accelerated in the 20th century compared to the early 19th century..
None
Select one or more: O a. If Country C's GDP per capita rises from $2,500 to 7,500, and Country D's GDP per capita rises from $6,000 to 18,000, the ratio of GDP per capita between the two countries is unchanged. O b. If a country's GDP doubles every 50 years on a ratio scale graph against time it will rise at an increasing rate. O c. Country B is growing a higher percentage rate than Country A, but Country A is 5 times richer than Country B. On a linear scale graph against time the gap between the two lines must be narrowing. O d. Country E is growing at the same percentage rate as Country F, but Country E is 3 times richer than Country F. On a log scale graph against time the gap between the two lines will be constant.
Real GDP in Country Z is growing at 5 per cent and its population is growing at 2 per cent. In Country L, real GDP is growing at 4 per cent and its population is growing at 0.5 per cent. Thus, Select one:- a. real GDP per person in Country L is growing at a faster rate than in Country Z. b. real GDP per person in Country L is growing at a rate that is not comparable to that in Country Z. c. real GDP per person in Country L is growing at the same rate as in Country Z. d. real GDP per person in Country Z is growing at a faster rate than in Country L.
If the capital stock equals 200 units in year 1 and the depreciation rate is 5 percent per year, then in year 2, assuming no new or replacement investment, the capital stock would equal_____ units. Select one: a. 195 b. 210 c. 190 d. 200
1. Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 7 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country? 2. The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $100,000 to develop and only $.50 per unit to deliver to each cell phone customer. What will be the per-unit cost of the application if it sells 100 units? 1000 units? 1 million units? 3. Suppose that work hours in New Zombie are 200 in year 1 and productivity is $8 per hour worked. What is New Zombie's real GDP? If work hours increase to 210 in year 2 and productivity rises to $10 per hour, what is New Zombie's rate of…

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