Dan Demaar and Rob Runten are working on a class assignment on economic growth.
ID: 1225684 • Letter: D
Question
Dan Demaar and Rob Runten are working on a class assignment on economic growth. Dan collects the GDP growth data for the country Fanez, which is located in the Middle East. He states that the standard of living in Fanez must have increased remarkably over the past ten years because it has a total GDP of $1,049 million, which is twice its GDP ten years back. Rob does not fully agree that the situation has improved substantially over these 10 years. He looks at the data and points out, that growth in Fanez was in fact very slow during this time. Its annual growth rate, while always positive, never exceeded 1.2 percent.
Which of the following, if true, is likely to strengthen Dan's argument?
A.
The population density in Fanez, as measured by number of persons per square mile, has reduced in the last 15 years.
B.
At least one in eight individuals in Fanez currently receives unemployment benefits from the government.
C.
Although the number of people enrolling in school has increased, fewer students are graduating from high school.
D.
While immigrants constituted only 5 percent of Fanez' population 10 years back, they currently form 36 percent of the total population.
E.
The pace of urbanization in Fanez is very slow. the effect of compounding over the ten years
Explanation / Answer
Correct option:
A.
The population density in Fanez, as measured by number of persons per square mile, has reduced in the last 15 years.
Reason:
A fall in the population density combined with increasing GDP or income signals an increase in income per household and thus increase in standard of living.
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