You are hired as an economic consultant to the countriesof Albernia and Brittania. Each

The accompanying table shows data on real GDP per capita for several countries between 1960 and 2000. (Source: The Penn World Table, Version 6.2.) a. Complete the table by expressing each years real GDP per capita as a percentage of its 1960 and 2000 levels. b.How does the growth in living standards from 1960 to 2000 compare across these four nations? What might account for these differences?

The accompanying table shows the average annual growth rate in real GDP per capita for several countries between 1960 and 2000. (Source: The Penn World Table, Version 6.2) a. For each decade and for each country, use the Rule of 70 where possible to calculate how long it would take for that countrys real GDP per capita to double. b. Suppose that the average annual growth rate that each country achieved over the period 19902000 continues indefinitely into the future. Starting from 2000, use the Rule of 70 to calculate, where possible, the year in which a country will have doubled its real GDP per capita

The accompanying table provides approximate statistics on per capita income levels and growth rates for regions defined by income levels. According to the Rule of 70, the high-income countries are projected to double their per capita GDP in approximately 37 years, in 2042. Throughout this question, assume constant growth rates for each of the regions that are fixed at their average value between 2000 and 2005. a. Calculate the ratio of per capita GDP in 2005 for each of the following: I. middle-income to high-income countries II. low-income to high-income countries III. low-income to middle-income countries b.Calculate the number of years it will take the low-income and middle-income countries to double their per capita GDP. c. Calculate the per capita GDP of each of the regions in 2042. (Hint: How many times does their per capita GDP double in 37 years?) d.Repeat part a with the projected per capita GDP in 2042. e. Compare your answers to parts a and d. Comment on the change in economic inequality between the regions.

You are hired as an economic consultant to the countries of Albernia and Brittania. Each countrys current relationship between physical capital per worker and output per worker is given by the curve labeled Productivity1 in the accompanying diagram. Albernia is at point A and Brittania is at point B. a. In the relationship depicted by the curve Productivity1, what factors are held fixed? Do these countries experience diminishing returns to physical capital per worker? b.Assuming that the amount of human capital per worker and the technology are held fixed in each country, can you recommend a policy to generate a doubling of real GDP per capita in Albernia? c. How would your policy recommendation change if the amount of human capital per worker and the technology were not fixed? Draw a curve on the diagram that represents this policy for Albernia.

The country of Androde is currently using Method 1 for its production function. By chance, scientists stumble on a technological breakthrough that will enhance Androdes productivity. This technological breakthrough is reflected in another production function, Method 2. The accompanying table shows combinations of physical capital per worker and output per worker for both methods, assuming that human capital per worker is fixed. a. Using the data in the accompanying table, draw the two production functions in one diagram. Androdes current amount of physical capital per worker is 100 using Method 1. In your figure, label that point A. b. Starting from point A, over a period of 70 years, the amount of physical capital per worker in Androde rises to 400. Assuming Androde still uses Method 1, in your diagram, label the resulting point of production B. Using the Rule of 70, calculate by how many percent per year output per worker has grown. c. Now assume that, starting from point A, over the same 70 years, the amount of physical capital per worker in Androde rises to 400, but that during that time, Androde switches to Method 2. In your diagram, label the resulting point of production C. Using the Rule of 70, calculate by how many percent per year output per worker has grown now. d.As the economy of Androde moves from point A to point C, which percentage of the annual productivity growth is due to higher total factor productivity?

The Bureau of Labor Statistics regularly releases the Productivity and Costs report for the previous month. Go to www.bls.gov and find the latest report. (On the Bureau of Labor Statistics home page, under Latest Numbers, find Productivity and click on News Release.) What were the percent changes in business and nonfarm business productivity for the previous quarter (on the basis of annualized rates for output per hour of all persons)? How does the percent change in that quarters productivity compare to data from the previous quarter?

How have U.S. policies and institutions influenced the countrys long -run economic growth?

Over the next 100 years, real GDP per capita in Groland is expected to grow at an average annual rate of 2.0%. In Sloland, however, growth is expected to be somewhat slower, at an average annual growth rate of 1.5%. If both countries have a real GDP per capita today of $20,000, how will their real GDP per capita differ in 100 years? [Hint: A country that has a real GDP today of $x and grows at y% per year will achieve a real GDP of $x (1 + 0.0y) z in z years. We assume that 0 y < 10.]

The accompanying table shows data on real GDP per capita in 2000 U.S. dollars for several countries in 1950 and 2004. (Source: The Penn World Table, Version 6.2) Complete the table. Have these countries converged economically?

The accompanying table shows data on real GDP per capita in 2000 U.S. dollars for several countries in 1960 and 2003. (Source: The Penn World Table, Version 6.2.) Complete the table. Have these countries converged economically?

Why would you expect real GDP per capita in California and Pennsylvania to exhibit convergence but not in California and Baja California, a state of Mexico that borders the United States? What changes would allow California and Baja California to converge?

According to the Oil & Gas Journal, the proven oil reserves of the top 12 oil producers was 1,137 billion barrels of oil in 2007. In that year, the U.S. Energy Information Administration reported that the daily oil production from these nations was 48.2 million barrels a day. a. At this rate, how many years will the proven oil reserves of the top 12 oil producers last? Discuss the Malthusian view in the context of the number you just calculated. b.What are some important assumptions implicit in your calculations that challenge the Malthusian view on this issue? c. Discuss how market forces may affect the amount of time the proven oil reserves will last, assuming that no new oil reserves are discovered and that the demand curve for oil remains unchanged.

The accompanying table shows the percent change in verified emissions of carbon dioxide (CO2) and the percent change in real GDP per capita for selected EU countries. a. Rank the countries in terms of percentage increase in CO2 emissions, from highest to lowest. What five countries have the highest percentage increase in emissions? What five countries have the lowest percentage increase in emissions? b.Now rank the countries in terms of the percentage increase in real GDP per person, from highest to lowest. What five countries have the highest percentage increase? What five countries have the lowest percentage increase? c. Would you infer from your results that CO2 emissions are linked to growth in output per person? d.Do high growth rates necessarily lead to high CO2 emissions?