Question

PROBLEMS 1. How would using a ratio scale (rather than a linear scale) affect Figure 1.1? 2. How fast would a country have to be growing in order to double its output in nine years? You should answer this question using the rule of 72, not calculator 3. Suppose that in a particular country, GDP per capita was $1,000 in 1900 and $4,000 in 1948. Using the rule of 72 (not a calculator), approximate the annual growth rate of GDP per capita. 4. Suppose that the entire population of the world consists of four people, divided into two countries of two people each. The following table shows data on their income and nationality. Based on this table, which is the more important source of wor within-country inequality? Id inequality:between-country inequality or Person Nationality Income Alfred Country A Bob Carol Country 8 3,000 DorisCountry A 4000 1,000 Country B2.000 5. In 1900 GDP per capita in Japan (measured in year 2000 dollars) was $1,433. In 2000 it was $23,971. Calculate the growth rate of income per capita in Japan over this period. Now suppose that Japan grows at the same rate for the century following 2000. What will Japanese GDP per capita be in the year 2100?

Answer 1

" ""72 rule"" state that when economy is growing with then is would Fa k ""72/r"" yean to double the initial levels Now for a years to double the a of an economy we need 72/9 = ""8 %"" Country should show with 8 % per year for 9 yeans a d p per capita in year 1900 = $ 10 w a d p per capita in year 1948 = $ 40 w it took 48 year to quadruped the a D p per capita each 24 year a D p per capita gets doubled r = 72/t = 72/24 = 3 % Annual growth rate per capita is 3 % \r\n growth rate income per capita = [239 + 1/1433]^1/1 infinity - 1 = 2. 857 % in year from 1900 to 20 w Japan's a D p per capita in year 2100 23971 (1. 02857)^100 = 400, 932. 7 cos dollars "