3. The following table lists GDP per capita from 1970 to 2010 for South Korea and the United States. As you can see, both grew substantially over that 40-year period.

a. Plot the five data points for each country on a graph using a nonproportional scale, as in Exhibit 7.3 in the chapter. Connect the points to create a line graph.

b. Plot the five data points for each country on a graph using a proportional scale, that is, a scale where equal distances represent equal percentage changes.
Connect the points to create a line graph.

c. Using Exhibit 7.5 and the production function, Y = A × F(K,H), with reference to South Korea, explain how the Korean War might have reduced catchup growth prior to 1966 and how recovery from the war might have affected catch-up growth after 1966.

Transcribed Image Text:

Year South Korean GDP per Capita U.S. GDP per Capita 1970 $317 $5,247 1980 $1,778 $12,598 1990 $6,642 $23,955 2000 $11,948 $36,467 2010 $22,151 $48,358