What is the importance in macroeconomics of measuring per capita GDP?
What will be an ideal response?
Answer: The level of per capita GDP clearly captures some element of what is meant by the phrase "standard of living." Most of the migration in the world, for example, involves people who are moving from countries with relatively low per capita GDP to countries with relatively high per capita GDP. If the population growth rates exceed the growth rate in real GDP, real GDP per capita will actually decline even though real GDP is increasing.
You might also like to view...
The demand curve facing a perfectly competitive firm is
a. almost vertical at the market quantity b. perfectly inelastic c. perfectly elastic d. horizontal at the price the firm wishes to charge e. downward sloping
Both sugar and fructose can be used in the production of candy. If the price of sugar increases,
a. the demand for sugar increases b. sugar becomes relatively more expensive than fructose only if the price of fructose falls c. sugar becomes relatively more expensive than fructose, other things constant d. the price of fructose immediately increases e. the price of fructose immediately decreases
A preferred shareholder
a. receives a stated dividend yield if profits are sufficient b. can vote at shareholder meetings on important corporate matters c. can vote at shareholder meetings only on the election of the members of the board of directors d. can convert his or her shares into common shares e. receives a dividend before bondholders receive anything
A quota is
A. A tax imposed on imported goods. B. A prohibition against trading a good. C. An elimination of trade to nurture an infant industry. D. A limit on the quantity of a good that may be imported in a given time period.