Consider two scenarios for a nation's economic growth. Scenario A has real GDP growing at an average annual rate of 2%; scenario B has an average annual growth of 4%. The nation's real GDP would double in about
A. 36 years under scenario A, versus 18 years under scenario B.
B. 36 years under scenario A, versus 9 years under scenario B.
C. 18 years under scenario A, versus 9 years under scenario B.
D. 25 years under scenario A, versus 12.5 years under scenario B.
Answer: A
You might also like to view...
Refer to the scenario above. Which of the following statements is true about the model's prediction?
A) The prediction can be applied to estimate the returns only for a limited number of years of additional education. B) The prediction is an approximate relationship and may not hold for everyone. C) The prediction cannot be verified empirically. D) The prediction is precise, exact, and accurate for the entire population.
If Sam can chop up more carrots per minute than Joe can, then
a. Joe has an absolute advantage in carrot chopping b. Joe must have a comparative advantage in carrot chopping c. Sam has an absolute advantage in carrot chopping d. Sam must have a comparative advantage in carrot chopping e. we can conclude nothing about absolute advantage
Which economic concept is the closest to the saying, "There's no such thing as a free lunch"?
a. Specialization b. Unlimited wants c. Underutilization of resources d. Opportunity costs e. Overutilization of resources
If the government wants to reduce smoking, it should impose a tax on
a. buyers of cigarettes. b. sellers of cigarettes. c. either buyers or sellers of cigarettes. d. whichever side of the market is less elastic.