Pad 11:58 AM Courses aplia com Course: FMIS 2201 Inform ay15 moodle umn.edu/plu
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Pad 11:58 AM Courses aplia com Course: FMIS 2201 Inform ay15 moodle umn.edu/plu Mac OS X Yosemite Essent Aplia: Student Question ECON 1022 Section 3 Fall 2015 Misrak Teka Customer Support Sign Out aplia Grades Personalized Reviews Course Materials Home Discussion Economic Growth: Theory and Policy Graded Assignment I Read Chapter 7 l Back to Assignment Due Tuesday 10.27.15 at 06:00 PM Keep the Highest: /5 Attempts: 2. Convergence theory The following table shows real GDP per capita for the United States, Taiwan, and Chad between 1970 and 2000. All figures are in 1998 U.S. dollars United States Taiwan Chad Real GDP per Capita Real GDP per Capita Growth Rate Real GDP per Capita Growth Rate Growth Rate Year $18,395 $2,319 $228 1970 $22,666 23% $4,483 $150 1980 25% 8431 $188 $28,435 1990 2000 $34,770 22% $14,504 $167 Source: Organisation for Economic Cooperation and Development (OECD) The (decade-long) economic growth rate for the United States is shown in the second column. For example, from 1970 to 1980, the United States GDP $22,666-$18,395 23% grew from $18,395 to $22,666, an increase of $18,395 Use this method to fill in the growth rates for Taiwan and Chad. Enter the growth rates to the nearest whole percentage point. Compare the data for the United States and Taiwan between 1970 and 1980. During this period had a higher level of real GDP per capita, while experienced a higher growth rate in real GDP per capita one of the following is a reason for this? that poor countries will grow more quickly than rich countries Which Convergence theory predicts Rich countries devote a large fraction of their GDP to helping poor countries. Poor countries tend to have higher birth rates than rich countries Copying existing technologies is less expensive than developing them independently Those who don't believe in the theory of convergence point to coun es such as Which of the following statements can explain why the theory of convergence may not always hold? Check all that apply Many poor countries have much less human capital than rich countries Rich countries actively try to keep poor countries poor through economic and military policies Many poor countries have much higher birth rates than rich coun es The growth experience of Taiwan illustrates that relatively poor countries can rich countries Grade No Save & Continue Session Copyright Notice y Notice ty No 59:35 Time ourExplanation / Answer
(1) Growth rate
(a) 1980
(i) Taiwan = $(4,483 - 2,319) / $2,219 = 93%
(ii) Chad = $(150 - 228) / $228 = - 34%
(b) 1990
(i) Taiwan = $(8,431 - 4,483) / $4,483 = 88%
(ii) Chad = $(188 - 150) / $150 = 25%
(c) 2000
(i) Taiwan = $(14,504 - 8,431) / $8,431 = 72%
(ii) Chad = $(167 - 188) / $188 = - 11%
(2)
United States had higher real GDP per capita & Taiwan had higher real growth rate per capita.
(3)
Option (c).
By reverse engineering tecnique used in copying existing technology developed by rich countries, poor countries save the R&D cost and GDP grows faster.
(4)
What are the options in the drop-down menu?
(5)
Options (b) & (c). Rich countries spend considerable GDP in aid, which if not done so, would have contributed to faster growth. And high birth rate in poor countries tend to reduce per capita growth & development indicators.
(6)
Poor countries can Outperform rich countries.
[What are the exact options in drop-down menu?]
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