Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 2, Problem 7IAPA
To determine
To explain:
The way distribution of income in China is unequal.
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“The major determinant of a country’s income distribution is its distribution of productive and income-earning assets.” Explain the meaning of this statement, giving examples of different kinds of productive and income-earning assets.
11. Working with Numbers and Graphs Q3
Consider an economy with only five people. Initially, Kevin earns $9,600 per year, Maria earns $12,000 per year, Rajiv earns $16,800 per year, Simone
earns $20,000 per year, and Yakov earns $21,600 per year.
Complete the following table by calculating each individual's share of total income.
Individual
Kevin
Maria
Rajiv
Simone
Yakov
Initial Income Share
(Percent)
Suppose that there is a rise in everyone's real income. Kevin now earns $9,900 per year, Maria now earns $13,500 per year, Rajiv now earns $18,900
per year, Simone now earns $22,500 per year, and Yakov now earns $25,200 per year.
Briefly describe the changes in relative income levels revealed by the table above. By 1700, which countries had higher GDP levels per capita? How has it changed since then? How has the gap in GDP per capita between countries changed?
2. How do Engerman and Sokoloff explain the reason for this change in relative income?
Chapter 2 Solutions
Foundations of Economics (8th Edition)
Ch. 2 - Prob. 1SPPACh. 2 - Prob. 2SPPACh. 2 - Prob. 3SPPACh. 2 - Prob. 4SPPACh. 2 - Prob. 5SPPACh. 2 - Prob. 6SPPACh. 2 - Prob. 7SPPACh. 2 - Prob. 8SPPACh. 2 - Prob. 9SPPACh. 2 - Prob. 10SPPA
Ch. 2 - Prob. 1IAPACh. 2 - Prob. 2IAPACh. 2 - Prob. 3IAPACh. 2 - Prob. 4IAPACh. 2 - Prob. 5IAPACh. 2 - Prob. 6IAPACh. 2 - Prob. 7IAPACh. 2 - Prob. 8IAPACh. 2 - Prob. 9IAPACh. 2 - Prob. 10IAPACh. 2 - Prob. 11IAPACh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 6MCQCh. 2 - Prob. 7MCQ
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