Question

(Table) According to the table, which country will double its real GDP per capita most quickly? Econia Macroland Noticia Zaria Real GDP per capita, current year $5,000 $8.000 $12.000 $15,000 Growth rate of real GDP per capita 10% 14% 1% 7% Nomicia Zaria Macroland Econia

Answer 1

In order to determime the approximate number of years in which a country will double its real GDP per capita, we can use the Rule of 70 -

Calculate the number of years in which Econia will double its real GDP per capita-

Number of years = 70/Growth rate of real GDP per capita

Number of years = 70/10 = 7 years

Econia will take 7 years to double its GDP.

Calculate the number of years in which Macroland will double its real GDP per capita-

Number of years = 70/Growth rate of real GDP per capita

Number of years = 70/7 = 7 years

Macroland will take 10 years to double its GDP.

Calculate the number of years in which Nomicia will double its real GDP per capita-

Number of years = 70/Growth rate of real GDP per capita

Number of years = 70/4 = 17.5 years

Nomicia will take 17.5 years to double its GDP.

Calculate the number of years in which Zaria will double its real GDP per capita-

Number of years = 70/Growth rate of real GDP per capita

Number of years = 70/1 = 70 years

Zaria will take 70 years to double its GDP.

Thus,

Econia will double its real GDP per capita most quickly.

Hence, the correct answer is the option (d) [Econia].