6. If the population growth rate is 2 percent, real GDP per person will double i
ID: 1163925 • Letter: 6
Question
6. If the population growth rate is 2 percent, real GDP per person will double in 7 years if real GDP grows by A. 7 B. 10 C. 12 D. 14 percent per year. 7. All of the following increase labor productivity except A. the accumulation of skill and knowledge B. an increase in capital per hour of labor C. an increase in consumption D. the employment of a new technology An economy can achieve faster economic growth without A. markets and property rights B. people being willing to save and invest C. incentives to encourage the research for new technologies D. an increase in the population growth rate 8.Explanation / Answer
6. Correct answer: C 12
Explanation: the growth rate of real GDP per person must be 10 percent. In order to double real gdp person. If the population growth rate is 2 percent, then real GDP must grow at 12 percent.
7. Correct option: C. Increase in consumption.
Explanation: the only way to increase labour productivity is through increases in the capital used in production.
8.Correct option: D. An increase in the population growth rate.
Explanation: An increase in the population growth rate leads to a decline in the growth rate of the per capita variables hence economy growth slow down.
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