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Chapter 20: Q 14. (page 496)

How much should a nation be concerned if its

rate of economic growth is just 2% slower than other

nations?

Short Answer

Expert verified

They should be concerned.

Step by step solution

01

Step 1. Definition.

The growth in the production compared from one period to another is referred to as economic growth.

02

Step 2. Explanation

If there is a difference of 2% in economic growth rates in long run then it is surely a matter of concern because in long run the 2% difference may become and will always become large difference over time.

There are various developed countries which are even now working on their standards of living so for all developing countries must work hard to catch up with the developed countries and this 2% difference makes a lot of difference in the long run.

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Most popular questions from this chapter

Would you expect capital deepening to result in diminishing returns? Why or why not? Would you expect improvements in technology to result in diminishing returns? Why or why not?

As technological change makes us more sedentary and food costs increase, obesity is likely. What factors do you think may limit obesity?

How did the Industrial Revolution increase the

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Use an example to explain why, after periods of rapid growth, a low-income country that has not caught up to a high-income country may feel poor.

Over the past 50 years, many countries have experienced an annual growth rate in real GDP per capita greater than that of the United States. Some examples are China, Japan, South Korea, and Taiwan. Does that mean the United States is regressing relative to other countries? Does that mean these countries will eventually overtake the United States in terms of the growth rate of real GDP per capita? Explain.
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