Survey Of Economics
10th Edition
ISBN: 9781337111522
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 23, Problem 20SQ
To determine
The action that helps to increase the
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2. You are a manager at a large shampoo company and on the search for future
markets. You identified two low income countries that look very dynamic:
Country A has a GDP/capita growth rate of -1% and population growth
rate of 9%. Country B has a GDP/capita growth rate of 7% and constant
population.
(a) Discuss which country you should focus on for your expansion.
(b) Discuss if your answer would change if the products you are trying to
sell are cars.
A. Differentiate between “economic growth” and “economic development
B. Explain THREE (3) factors that contributed to the decline in GDP of some of the countries in the Caribbean region during 2020.
C. Discuss THREE (3) strategies that may be used by Caribbean governments to achieve economic growth and development.
3. An economy described by the Augmented Solow growth model has the following production function with populationgrowth (1+n) and technological growth (1+z):y =p(k)(a) Solve for the steady-state values of capital per capita and output as a function of s, n, z, and δ.(b) A developed country has a saving rate of 28 percent and a population growth rate of 1 percent per year. A lessdeveloped country has a saving rate of 10 percent and a population growth rate of 4 percent per year. In bothcountries, g = 0.02 and d = 0.04. Find the steady-state value of y for each country.(c) What policies might the less developed country pursue to raise its level of income? Graphically demonstrate howyour advised policy would increase income per capita (y).
Chapter 23 Solutions
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- Refer to the graph. According to the economic concept of catch-up, which of the following is CORRECT? A. Richer countries should grow more quickly and will be at point B. B. Richer countries should grow more slowly and will be at point A. C. Poorer countries should grow more quickly and will be at point A. D. Poorer countries should grow more slowly and will be at point B. G Growth in real GDP per capita A Catch-up line B Initial level of real GDP per capitaarrow_forwardDistinguish between economic growth and economic development. How important is the accumulation of saving to a country’s economic growth?arrow_forwardAccording to 2019 data, Japan will continue to be the most aged country in the world until 2050. Japan's workforce is estimated to drop by 13 million by 2040. How will the economy be impacted? a. The impacts on labor productivity will exceed the impacts on economic growth. b. The impacts on economic growth will exceed the impacts on labor productivity. c. The impacts on economic growth and labor productivity will be equal/comparable. d. Neither labor productivity nor economic growth will be impacted.arrow_forward
- Draw a production possibilities frontier for a country that produces two goods: capital goods and consumption goods. Show a point of production that will allow a country to achieve the maximum amount of future growth while still producing a small amount of consumption goods.arrow_forwardWhy capital formation and technical progress is a source of economic growth?arrow_forwardWhich of the following statements about economic growth is false? a) Economic growth solves the economic problem. b) Economic growth can be helped by having new technology. c) Economic growth can be helped with more education. d) Economic growth can be helped by using tidal powerarrow_forward
- Which of the following helps Oman to achieve economic development? a. Increase dependency of oil and gas b. Encourage people to spend more and save less c. Increase exports of Omani product d. Decrease production of goods and servicesarrow_forwardIndicate whether each description in the following table best describes economic growth or economic development. Description The ability of an economy to produce greater levels of output, represented by an outward shift of its production possibilities curve (PPC) Encompasses improvement in the quality of life, including increases in the production of goods and services Economic growth is measured by Economic Growth Economic Development о о O , while economic development is measured by оarrow_forwardEconomic growth means an increase in the ability of an economy capable to produce goods and services; and it is shown by a movement of the production possibilities to the right. True or False?arrow_forward
- 28) Empirical evidence from 1960 to 2010 shows that convergence in economic growth is occurring in which of the following cases? A) Low-income industrial countries are catching up to high-income industrial countries. B) Low-income developing countries are catching up to high-income industrial countries. C) Low-income industrial countries are catching up to high-income developing countries. D) All low-income countries are catching up to all high-income countries. 29) Which of the following countries actually experienced negative economic growth from 1960 to 2010? A) Israel B) Singapore C) Niger D) Malaysia 30) Which of the following accurately describes the impact of the rule of law on a country's economic growth rate? A) Countries with a strong rule of law have faster economic growth. B) Countries with a weak rule of law have faster economic growth. C) Countries that enforce property rights through lawsuits have slower economic growth. D)…arrow_forwardWhich of the following policies would economists consider to be actions that a DVC government might take that would improve growth prospects? Choose one or more answers from the choices shown. a. Helping to extend the banking system to the rural poor. b. Passing high tariffs against foreign products. c. Constructing better ports, roads, and Internet networks. d. Charging high fees for public elementary schools.arrow_forwardTrue or false Technological advancements is necessary for the economic growth in a country.arrow_forward
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