EBK ECONOMICS
EBK ECONOMICS
13th Edition
ISBN: 8220106798607
Author: Arnold
Publisher: CENGAGE L
Question
Book Icon
Chapter 17, Problem 1QP
To determine

Comparing per capita real economic growth and absolute real economic growth.

Expert Solution & Answer
Check Mark

Explanation of Solution

The per capita real economic growth is accounted by dividing the real gross domestic product (GDP) with total population. Growth of an economy measures the changes in GDP from one year to another year in per capita GDP and measure standard of living of the people. The absolute real economic growth measures the percentage change in real GDP from one year to another. However, improvement in standard of living cannot be measured properly. It is because absolute real per capita measures the value of output without considering the population.

Thus, the per capita real economic growth is more efficient measure than absolute real economic growth in terms of measuring the standard of living.

Economics Concept Introduction

Per capita real economic growth: Per capita real economic growth is accounted by dividing the real gross domestic product (GDP) with total population.

 Absolute real per capita: Absolute real per capita is a macroeconomic measure of the value of economic output adjusted for price changes.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
• What are the 5 positive and 5 negative attitudes a salesperson has? What are the best way to improve those negative attitudes?  • What is the another concise definition of Salesmanship?  • As a Watson's salesperson in the Philippines what are they're: - earning opportunities?  - chances of promotion and career growth? - rewards and awards? - incentives and fringe benefits? - employment requirements?
Where in the Victoria, BC is the most logging occurring? Include relative and absolute locations
In Foresty , What do most clear cut locations have in common with each other? Do they occur along the shorelines of lakes and rivers? Near major highways? Are they near cities or far from people?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Macroeconomics
Economics
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Text book image
Economics:
Economics
ISBN:9781285859460
Author:BOYES, William
Publisher:Cengage Learning