Briefly explain how growth in real GDP differs across economies including the United States, Japan, Africa, Central America, Hong Kong, Korea, and Singapore
What will be an ideal response?
Over the past 100 years, growth in real GDP per person in the United States has averaged 2 percent per year. The growth rate has varied from one period to the next. Some rich nations, such as Japan, are catching up to the U.S. level of real GDP per person. Many poor nations, especially those in Africa and Central America are not catching up. But Hong Kong, Korea, Singapore, and Taiwan are generally growing more rapidly than the United States and so they are catching up.
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Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the _______________ advantage in the production of tablets, which means they should specialize in __________________.
A. comparative; tablets B. absolute; tablets C. comparative; iPods D. absolute; iPods
In the United States, some state governments set tiered prices for electricity. These tiered prices lead to budget lines that are:
A. upward-sloping. B. kinked. C. horizontal at a specific level of electricity consumption. D. vertical at a specific level of electricity consumption.