Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 20, Problem 22CTQ
Over the past 50 years, many countries have experienced an annual growth rate in real
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Fill in the third blank.
Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000.
How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP?
India's per-capita GDP must double __________ times.
Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate.
Doubling time: ______________________ years
How many years will it take for India to reach Italy’s current level of GDP per capita?
It will take ________________ years for India to reach Italy's current level of GDP per capita.
Fill in the second blank.
Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000.
How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP?
India's per-capita GDP must double __________ times.
Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate.
Doubling time: ______________________ years
The table below shows the level of real GDP and real GDP per capita growth rates for a select set of countries for the year 2016.
Determine the number of years it will take for the standard of living to double in each country.
Instructions: Round your answers to one decimal place.
Growth Rates and the Rule of 72
Country
Real GDP (millions)
Growth Rate of Real GDP per Capita (percent)
Number of Years for Standard of Living to Double
Canada
$1,445,260
0.8%
Madagascar
37,297
1.8
Philippines
843,692
5.1
Sweden
488,759
2.8
United States
12,341,233
0.2
Chapter 20 Solutions
Principles of Economics 2e
Ch. 20 - Explain what the Industrial Revolution was and...Ch. 20 - Explain the difference between property rights and...Ch. 20 - Are there other ways in which we can measure...Ch. 20 - Assume there are two countries: South Korea and...Ch. 20 - What do the growth accounting studies conclude are...Ch. 20 - What policies can the government of a free-market...Ch. 20 - List the areas where government policy can help...Ch. 20 - Use an example to explain why, after periods of...Ch. 20 - Would the following events usually lead to capital...Ch. 20 - What are the advantages of backwardness for...
Ch. 20 - Would you expect capital deepening to result in...Ch. 20 - Why dues productivity growth in high-income...Ch. 20 - How did the Industrial Revolution increase the...Ch. 20 - How much should a nation be concerned if its rate...Ch. 20 - How is GDP per capita calculated differently from...Ch. 20 - How do gains in labor productivity lead to gains...Ch. 20 - What is an aggregate production function?Ch. 20 - What is capital deepening?Ch. 20 - What do economists mean when they refer to...Ch. 20 - For a high-income economy like the United States,...Ch. 20 - List some arguments for and against the likelihood...Ch. 20 - Over the past 50 years, many countries have...Ch. 20 - Labor Productivity and Economic Growth outlined...Ch. 20 - Change in labor productivity is one of the most...Ch. 20 - Refer back to the Work It Out about Comparing the...Ch. 20 - Education seems to be important for human capital...Ch. 20 - Describe some of the political and social...Ch. 20 - Why is investing in girls education beneficial for...Ch. 20 - How is the concept of technology, as defined with...Ch. 20 - What sorts of policies can governments implement...Ch. 20 - As technological change makes us more sedentary...Ch. 20 - An economy starts off with a GDP per capita of...Ch. 20 - An economy starts off with a GDP per capital of...Ch. 20 - Say that the average worker in Canada has a...Ch. 20 - Say that the average worker in the U.S. economy is...
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