Determine the change in real GDP per person in the industrialized countries over the past century.

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Answer 1

Question

Chapter 7, Problem 1RQ

To determine

Determine the change in real GDP per person in the industrialized countries over the past century.

Expert Solution & Answer

Explanation of Solution

The real GDP of a nation is always treated as a basic measure of the level of economic activity. Thus, the real GDP per person indicates a measure of the quantity of goods and services available to the typical resident of a country. Over the past centuries, since 1870, the data show that the value of real GDP per person increases, which is more than 10-fold in Country U’s economy and many other industrial nations and 25-fold in Country J. As a result, the material standard of living of an average person in these industrialized countries increases. However, there is a huge gap between the growth rates of the real GDP in underdeveloped nations and developed nations. In the final result, there is a huge gap in the standard of living of people between the high income nations and the low income nations.

Economics Concept Introduction

Real GDP: Real GDP measures the volume of output. It is adjusted for inflation and measured at constant prices.

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You are the manager of a large automobile dealership who wants to learn more about the effective- ness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and the quantities sold of a basic model (adjusted for various options) over this period of time. 1. Graph this information on a scatter plot. Estimate the demand equation. What do the regression results indicate about the desirability of discounting the price? Explain. Month Price Quantity Jan. 12,500 15 Feb. 12,200 17 Mar. 11,900 16 Apr. 12,000 18 May 11,800 20 June 12,500 18 July 11,700 22 Aug. 12,100 15 Sept. 11,400 22 Oct. 11,400 25 Nov. 11,200 24 Dec. 11,000 30 Jan. 10,800 25 Feb. 10,000 28 2. What other factors besides price might be included in this equation? Do you foresee any difficulty in obtaining these additional data or incorporating them in the regression analysis?

Answer 2

Question

Chapter 7, Problem 1RQ

To determine

Determine the change in real GDP per person in the industrialized countries over the past century.

Expert Solution & Answer

Explanation of Solution

The real GDP of a nation is always treated as a basic measure of the level of economic activity. Thus, the real GDP per person indicates a measure of the quantity of goods and services available to the typical resident of a country. Over the past centuries, since 1870, the data show that the value of real GDP per person increases, which is more than 10-fold in Country U’s economy and many other industrial nations and 25-fold in Country J. As a result, the material standard of living of an average person in these industrialized countries increases. However, there is a huge gap between the growth rates of the real GDP in underdeveloped nations and developed nations. In the final result, there is a huge gap in the standard of living of people between the high income nations and the low income nations.

Economics Concept Introduction

Real GDP: Real GDP measures the volume of output. It is adjusted for inflation and measured at constant prices.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 1RQ

To determine

Determine the change in real GDP per person in the industrialized countries over the past century.

Expert Solution & Answer

Explanation of Solution

The real GDP of a nation is always treated as a basic measure of the level of economic activity. Thus, the real GDP per person indicates a measure of the quantity of goods and services available to the typical resident of a country. Over the past centuries, since 1870, the data show that the value of real GDP per person increases, which is more than 10-fold in Country U’s economy and many other industrial nations and 25-fold in Country J. As a result, the material standard of living of an average person in these industrialized countries increases. However, there is a huge gap between the growth rates of the real GDP in underdeveloped nations and developed nations. In the final result, there is a huge gap in the standard of living of people between the high income nations and the low income nations.

Economics Concept Introduction

Real GDP: Real GDP measures the volume of output. It is adjusted for inflation and measured at constant prices.

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!

Answer 4

Question

Chapter 7, Problem 1RQ

To determine

Determine the change in real GDP per person in the industrialized countries over the past century.

Expert Solution & Answer

Explanation of Solution

The real GDP of a nation is always treated as a basic measure of the level of economic activity. Thus, the real GDP per person indicates a measure of the quantity of goods and services available to the typical resident of a country. Over the past centuries, since 1870, the data show that the value of real GDP per person increases, which is more than 10-fold in Country U’s economy and many other industrial nations and 25-fold in Country J. As a result, the material standard of living of an average person in these industrialized countries increases. However, there is a huge gap between the growth rates of the real GDP in underdeveloped nations and developed nations. In the final result, there is a huge gap in the standard of living of people between the high income nations and the low income nations.

Economics Concept Introduction

Real GDP: Real GDP measures the volume of output. It is adjusted for inflation and measured at constant prices.

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!

Answer 5

Chapter 7, Problem 1RQ

To determine

Determine the change in real GDP per person in the industrialized countries over the past century.

Expert Solution & Answer

Explanation of Solution

The real GDP of a nation is always treated as a basic measure of the level of economic activity. Thus, the real GDP per person indicates a measure of the quantity of goods and services available to the typical resident of a country. Over the past centuries, since 1870, the data show that the value of real GDP per person increases, which is more than 10-fold in Country U’s economy and many other industrial nations and 25-fold in Country J. As a result, the material standard of living of an average person in these industrialized countries increases. However, there is a huge gap between the growth rates of the real GDP in underdeveloped nations and developed nations. In the final result, there is a huge gap in the standard of living of people between the high income nations and the low income nations.

Economics Concept Introduction

Real GDP: Real GDP measures the volume of output. It is adjusted for inflation and measured at constant prices.

Answer 6

Chapter 7, Problem 1RQ

To determine

Determine the change in real GDP per person in the industrialized countries over the past century.

Expert Solution & Answer

Explanation of Solution

The real GDP of a nation is always treated as a basic measure of the level of economic activity. Thus, the real GDP per person indicates a measure of the quantity of goods and services available to the typical resident of a country. Over the past centuries, since 1870, the data show that the value of real GDP per person increases, which is more than 10-fold in Country U’s economy and many other industrial nations and 25-fold in Country J. As a result, the material standard of living of an average person in these industrialized countries increases. However, there is a huge gap between the growth rates of the real GDP in underdeveloped nations and developed nations. In the final result, there is a huge gap in the standard of living of people between the high income nations and the low income nations.

Economics Concept Introduction

Real GDP: Real GDP measures the volume of output. It is adjusted for inflation and measured at constant prices.

Answer 7

Chapter 7, Problem 1RQ

To determine

Determine the change in real GDP per person in the industrialized countries over the past century.

Answer 8

Expert Solution & Answer

Explanation of Solution

The real GDP of a nation is always treated as a basic measure of the level of economic activity. Thus, the real GDP per person indicates a measure of the quantity of goods and services available to the typical resident of a country. Over the past centuries, since 1870, the data show that the value of real GDP per person increases, which is more than 10-fold in Country U’s economy and many other industrial nations and 25-fold in Country J. As a result, the material standard of living of an average person in these industrialized countries increases. However, there is a huge gap between the growth rates of the real GDP in underdeveloped nations and developed nations. In the final result, there is a huge gap in the standard of living of people between the high income nations and the low income nations.