The expected years that the per capita income of the Democratic Republic of Congo will take to surpass the per capita income of the United States of America. Concept Introduction: The per capita income index is an indicator of how much an individual earns in comparison to his peers in an economy during a specific period of time. This indicator helps to understand the standard of living of individuals in different countries by comparing their average per capita income with one another.

Question

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Answer 1

Question

Chapter 21, Problem 1.1PA

To determine

The expected years that the per capita income of the Democratic Republic of Congo will take to surpass the per capita income of the United States of America.

Concept Introduction:

The per capita income index is an indicator of how much an individual earns in comparison to his peers in an economy during a specific period of time. This indicator helps to understand the standard of living of individuals in different countries by comparing their average per capita income with one another.

Expert Solution & Answer

Explanation of Solution

Currently the per capita income of United States is 160 times greater than the per capita income of Congo. The per capita income growth of United States is 3% per annum in comparison to 6% per annum per capita growth of Congo. Thus, we can understand that Congo's per capita income growth is 3% faster per annum than the United States. To calculate the number of years that Congo requires for surpassing the per capita growth of United States:

$\begin{array}{l} {(l + g)}^{t} = N \\ t \log (l + g) = \log (N) \\ t = \frac{\log (N)}{\log (l + g)} \end{array}$

Where,

g = growth rate

t =number of years required

n = per capita income

$\begin{array}{l} t = \frac{l o g (160)}{l o g (1.03)} \\ = \frac{5.075}{0.0295} \\ \begin{array}{l} = 171.70 \end{array} \end{array}$

Hence, in 171.70 years, the Democratic Republic of Congo’s per capita income will surpass the per capita income of the United States of America, if both the countries continue to grow at the current growth rate annually.

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General Accounting

Double Trouble and Career Choices It is Sunday afternoon, and you’re attending your twin nephews’ high school graduation party. Your sister, the mom of the twins, brings you a piece of cake and starts venting about the twins, exclaiming, “Could you believe those guys? Jamal wants to go to school to become a musician while Khalil wants to join the National Guard! Like, why don't they do what normal kids do, like attend medical school or business school or become teachers or something so they can land on a good paying job? I don’t get them. They are so irrational, aren’t they?” Then, your sister looked at you and posed the following questions. "Please tell me: Who is more rational in their choice, Jamal or Khalil? Why do you think they made the career choice they did? Why didn’t they choose the same fields of study as their friends, like medicine, education, business, or aviation?"

Answer 2

Question

Chapter 21, Problem 1.1PA

To determine

The expected years that the per capita income of the Democratic Republic of Congo will take to surpass the per capita income of the United States of America.

Concept Introduction:

The per capita income index is an indicator of how much an individual earns in comparison to his peers in an economy during a specific period of time. This indicator helps to understand the standard of living of individuals in different countries by comparing their average per capita income with one another.

Expert Solution & Answer

Explanation of Solution

Currently the per capita income of United States is 160 times greater than the per capita income of Congo. The per capita income growth of United States is 3% per annum in comparison to 6% per annum per capita growth of Congo. Thus, we can understand that Congo's per capita income growth is 3% faster per annum than the United States. To calculate the number of years that Congo requires for surpassing the per capita growth of United States:

$\begin{array}{l} {(l + g)}^{t} = N \\ t \log (l + g) = \log (N) \\ t = \frac{\log (N)}{\log (l + g)} \end{array}$

Where,

g = growth rate

t =number of years required

n = per capita income

$\begin{array}{l} t = \frac{l o g (160)}{l o g (1.03)} \\ = \frac{5.075}{0.0295} \\ \begin{array}{l} = 171.70 \end{array} \end{array}$

Hence, in 171.70 years, the Democratic Republic of Congo’s per capita income will surpass the per capita income of the United States of America, if both the countries continue to grow at the current growth rate annually.

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Answer 3

Question

Chapter 21, Problem 1.1PA

To determine

The expected years that the per capita income of the Democratic Republic of Congo will take to surpass the per capita income of the United States of America.

Concept Introduction:

The per capita income index is an indicator of how much an individual earns in comparison to his peers in an economy during a specific period of time. This indicator helps to understand the standard of living of individuals in different countries by comparing their average per capita income with one another.

Expert Solution & Answer

Explanation of Solution

Currently the per capita income of United States is 160 times greater than the per capita income of Congo. The per capita income growth of United States is 3% per annum in comparison to 6% per annum per capita growth of Congo. Thus, we can understand that Congo's per capita income growth is 3% faster per annum than the United States. To calculate the number of years that Congo requires for surpassing the per capita growth of United States:

$\begin{array}{l} {(l + g)}^{t} = N \\ t \log (l + g) = \log (N) \\ t = \frac{\log (N)}{\log (l + g)} \end{array}$

Where,

g = growth rate

t =number of years required

n = per capita income

$\begin{array}{l} t = \frac{l o g (160)}{l o g (1.03)} \\ = \frac{5.075}{0.0295} \\ \begin{array}{l} = 171.70 \end{array} \end{array}$

Hence, in 171.70 years, the Democratic Republic of Congo’s per capita income will surpass the per capita income of the United States of America, if both the countries continue to grow at the current growth rate annually.

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Answer 4

Question

Chapter 21, Problem 1.1PA

To determine

The expected years that the per capita income of the Democratic Republic of Congo will take to surpass the per capita income of the United States of America.

Concept Introduction:

The per capita income index is an indicator of how much an individual earns in comparison to his peers in an economy during a specific period of time. This indicator helps to understand the standard of living of individuals in different countries by comparing their average per capita income with one another.

Expert Solution & Answer

Explanation of Solution

Currently the per capita income of United States is 160 times greater than the per capita income of Congo. The per capita income growth of United States is 3% per annum in comparison to 6% per annum per capita growth of Congo. Thus, we can understand that Congo's per capita income growth is 3% faster per annum than the United States. To calculate the number of years that Congo requires for surpassing the per capita growth of United States:

$\begin{array}{l} {(l + g)}^{t} = N \\ t \log (l + g) = \log (N) \\ t = \frac{\log (N)}{\log (l + g)} \end{array}$

Where,

g = growth rate

t =number of years required

n = per capita income

$\begin{array}{l} t = \frac{l o g (160)}{l o g (1.03)} \\ = \frac{5.075}{0.0295} \\ \begin{array}{l} = 171.70 \end{array} \end{array}$

Hence, in 171.70 years, the Democratic Republic of Congo’s per capita income will surpass the per capita income of the United States of America, if both the countries continue to grow at the current growth rate annually.

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Answer 5

Chapter 21, Problem 1.1PA

To determine

The expected years that the per capita income of the Democratic Republic of Congo will take to surpass the per capita income of the United States of America.

Concept Introduction:

The per capita income index is an indicator of how much an individual earns in comparison to his peers in an economy during a specific period of time. This indicator helps to understand the standard of living of individuals in different countries by comparing their average per capita income with one another.

Expert Solution & Answer

Explanation of Solution

Currently the per capita income of United States is 160 times greater than the per capita income of Congo. The per capita income growth of United States is 3% per annum in comparison to 6% per annum per capita growth of Congo. Thus, we can understand that Congo's per capita income growth is 3% faster per annum than the United States. To calculate the number of years that Congo requires for surpassing the per capita growth of United States:

$\begin{array}{l} {(l + g)}^{t} = N \\ t \log (l + g) = \log (N) \\ t = \frac{\log (N)}{\log (l + g)} \end{array}$

Where,

g = growth rate

t =number of years required

n = per capita income

$\begin{array}{l} t = \frac{l o g (160)}{l o g (1.03)} \\ = \frac{5.075}{0.0295} \\ \begin{array}{l} = 171.70 \end{array} \end{array}$

Hence, in 171.70 years, the Democratic Republic of Congo’s per capita income will surpass the per capita income of the United States of America, if both the countries continue to grow at the current growth rate annually.

Answer 6

Chapter 21, Problem 1.1PA

To determine

The expected years that the per capita income of the Democratic Republic of Congo will take to surpass the per capita income of the United States of America.

Concept Introduction:

The per capita income index is an indicator of how much an individual earns in comparison to his peers in an economy during a specific period of time. This indicator helps to understand the standard of living of individuals in different countries by comparing their average per capita income with one another.

Expert Solution & Answer

Explanation of Solution

Currently the per capita income of United States is 160 times greater than the per capita income of Congo. The per capita income growth of United States is 3% per annum in comparison to 6% per annum per capita growth of Congo. Thus, we can understand that Congo's per capita income growth is 3% faster per annum than the United States. To calculate the number of years that Congo requires for surpassing the per capita growth of United States:

$\begin{array}{l} {(l + g)}^{t} = N \\ t \log (l + g) = \log (N) \\ t = \frac{\log (N)}{\log (l + g)} \end{array}$

Where,

g = growth rate

t =number of years required

n = per capita income

$\begin{array}{l} t = \frac{l o g (160)}{l o g (1.03)} \\ = \frac{5.075}{0.0295} \\ \begin{array}{l} = 171.70 \end{array} \end{array}$

Hence, in 171.70 years, the Democratic Republic of Congo’s per capita income will surpass the per capita income of the United States of America, if both the countries continue to grow at the current growth rate annually.

Answer 7

Chapter 21, Problem 1.1PA

To determine

The expected years that the per capita income of the Democratic Republic of Congo will take to surpass the per capita income of the United States of America.

Concept Introduction:

The per capita income index is an indicator of how much an individual earns in comparison to his peers in an economy during a specific period of time. This indicator helps to understand the standard of living of individuals in different countries by comparing their average per capita income with one another.

Answer 8

Expert Solution & Answer

Explanation of Solution

Currently the per capita income of United States is 160 times greater than the per capita income of Congo. The per capita income growth of United States is 3% per annum in comparison to 6% per annum per capita growth of Congo. Thus, we can understand that Congo's per capita income growth is 3% faster per annum than the United States. To calculate the number of years that Congo requires for surpassing the per capita growth of United States:

$\begin{array}{l} {(l + g)}^{t} = N \\ t \log (l + g) = \log (N) \\ t = \frac{\log (N)}{\log (l + g)} \end{array}$

Where,

g = growth rate

t =number of years required

n = per capita income

$\begin{array}{l} t = \frac{l o g (160)}{l o g (1.03)} \\ = \frac{5.075}{0.0295} \\ \begin{array}{l} = 171.70 \end{array} \end{array}$

Hence, in 171.70 years, the Democratic Republic of Congo’s per capita income will surpass the per capita income of the United States of America, if both the countries continue to grow at the current growth rate annually.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 21 - Prob. 1.1PA Ch. 21 - Prob. 2.2PA Ch. 21 - Prob. 2.3PA Ch. 21 - Prob. 3.4PA Ch. 21 - Prob. 4.5PA Ch. 21 - Prob. 4.6PA

Explanation of Solution

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Chapter 21 Solutions