You learned that convergence is a pattern in which economies with low per capita income grows faster than economies with high per capita incomes. In thiscontext, there are arguments pro and against convergence. Based on the figure below, choose the correct answer for the blanks:Technology 3Technology 2Output per CapitaG₁G₂G₁RSTVWTechnology 1C₁ C₂ C₂Capital (physical and human)Capital deepening and new technology text only.One of the arguments that favors convergence is based on the idea of the diminishing marginal returns of capital deepening that is illustrated when the economymoved from point R to point U to point WHowever, the argument that convergence is neither inevitable nor likely argues that the development of newtechnologies can sidestep the diminishing marginal returns of capital deepening, so that the economy could move from point U to Wfrom point S to point T, and then

At first we are in technology 1, So when Diminishing marginal returns to capital deepening works,…

Answered: You learned that convergence is a…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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What are the current growth rates, population size and patterns of the United States, China, and Brazil. What are the discussions on events or policies that may have affected that countries population size/growth rate. Be sure to include reputable sources, such as the United Nations or your selected country's government websites. government's response to population changes (laws, policies, social changes, etc.) Give the current population size of the world and the current projection of the population size as the 21st century progressed.
Assume that a leader country has real GDP per capita of $80,000, whereas a follower country has real GDP per capita of $40,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 5 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country? Instructions: Enter your answer as a whole number. years
Which of the following two countries A and B ceteris paribus do you expect to have the higher steady-state level of GDP per capita? Moreover, which country do you expect to grow faster? For this, you may assume that both countries will initially start their growth paths below their corresponding steady states. a) The two countries have initially the same levels of GDP per capita but country A has a higher savings rate . b) The two countries have initially the same levels of GDP per capita but population in country A grows at a rate of 10% while in country B population grows at a rate of 8%. c) The two countries have initially the same levels of GDP per capita but the average educational attainment of workers in country A is about 1.2 times higher than in country B.
Hypothetical data is given for the following countries. Calculate real growth per capita in the following countries: Instructions: Enter your responses rounded to one decimal place. If you are entering a negative number, be sure to include a negative sign (-) in front of the number. a. Democratic Republic of Congo: population growth = 2.8 percent; real output growth=-1.6 percent. Real growth per capita: % b. Estonia: population growth-(0.6) percent; real output growth-4.5 percent. Real growth per capita:[ % c. India: population growth=1.7 percent; real output growth = 5.9 percent. Real growth per capita: [ % d. United States: population growth 0.7 percent; real output growth = 2.8 percent. Real growth per capita: [
Look at the hypothetical data in the table below: Real GDP per capitaNigeria-$1,000Mexico-$8,000China-$15,000United States-$33,000 Fact is, changes in income over time explains economic growth of a country. Using two sources of growth, account for the large differences in income per capita across these countries?
Consider the following table displaying annual growth rates for nations X, Y, and Z, each of which entered 2020 with real per capita GDP equal to $20,000. Country X Y Z 2020 7 4 5 Annual Growth Rate (%) 2021 1 5 4 2022 3 7 3 2023 492 a. The nation that most likely experienced a sizable earthquake in late 2020 that destroyed a significant portion of its stock of capital goods, but was followed by speedy investments in rebuilding the nation's capital stock, is Y Calculate this nation's per capita real GDP at the end of 2023. $ (Enter your response rounded to the nearest dollar.)
Suppose that in the year 2020 there are two different countries-Sparta and Rome each with a real GOP per capita of $45,000 Real GDP per capita in Sparta grows at a rate of 2.2% per year. Real GDP per capita in Rome grows at a rate of 1.7% per year. Assume these growth rates continue. Using the Rule of 70, how many years will it take for the countries to hieve a real GDP per capita of $90,000 per year? 37 years for Sparta and 45 years for Rome O 32 Years for Sparta and 70 Years for Rome O 70 years for Sparta and 41 years for Rome O 32 years for Sparta and 41 years for Rome O 35 years for Sparta and 45 years for Rome
Look at the hypothetical data below:Real GDP per capitaNigeria $1,000Mexico $8,000China $15,000United States $33,000Fact is, changes in income over time explains economic growth of a country. Using two sources of growth, account for the large differences in income per capita across these countries?e. Discuss three policies governments can use to promote economic growth.
True or false Technological advancements is necessary for the economic growth in a country.
There are two countries in the world: Happytimes and Treehausland. Both countries currently have a GDP per capita of 1. Use the information in the table about growth and productivity to answer the questions. Round all numerical answers to two decimal places. Country Growth rate of GDP per capita Happytimes 0.086 Treehausland 0.031 What is GDP per capita in Happytimes in 21 years21 years ? Happytimes's GDP: $ What is GDP per capita in Treehausland in 21 years21 years ? Treehausland's GDP: $ In 21 years21 years , Happytimes grows how many times more than Treehausland? Happytimes's growth: times Treehausland's growth
Assume that a leader country has real GDP per capita of $40,000, whereas a follower country has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 2 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country?
What must be the relationship between the rate of growth of technological change (g) and the population growth rate (L/L) for income per capita to continue to increase?

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