Book cover for Economics

Economics

Michael Parkin

ISBN #9780133872279

12th Edition

839 Questions

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Example Problems

Example 1

Brazil's real GDP was 1,180 trillion reais in 2013 and 1,202 trillion reais in $2014 .$ Brazil's population was 198 million in 2013 and 200 million in $2014 .$ Calculate a. The growth rate of real GDP. b. The growth rate of real GDP per person. c. The approximate number of years it takes for real GDP per person in Brazil to double if the 2014 growth rate of real GDP and the population growth rate are maintained.

Example 2

The IMF projects that China's real GDP per person will be 15,040 yuan in 2015 and 16,010 yuan in 2016 and that India's real GDP per person will be 54,085 rupees in 2015 and 56,840 rupees in 2016 By maintaining their current growth rates, which country will be first to double its standard of living?

Example 3

China was the largest economy for centuries because everyone had the same type of economy-subsistence-and so the country with the most people would be economically biggest. Then the Industrial Revolution sent the West on a more prosperous path. Now the world is returning to a common economy, this time technology- and information-based, so once again population triumphs. a. Why was China the world's largest economy until $1890 ?$ b. Why did the United States surpass China in 1890 to become the world's largest economy?

Example 4

What are the equilibrium real wage rate, the quantity of labor employed in $2014,$ labor productivity, and potential GDP in 2014 ?

Example 5

In $2015,$ the population increases and labor hours supplied increase by 10 at each real wage rate. What are the equilibrium real wage rate, labor productivity, and potential GDP in 2015 ?

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