ECONOMICS QUESTIONS

Question 2: Refer to ECON Q2.png, find the percentages and round to 2 decimal places, show your work.

The following table gives real GDP figures for an economy for four years. Fill in the growth rate for each year, and then find the average annual growth rate for the period. Enter all answers as percentages rounded to one decimal place. Year Real GDP Growth Rate (%) 1999 140 billion 2000 145.6 billion 2001 154.3 billion 2002 166.6 billion The average annual growth rate for this period is %The figure in the window on the right shows the per-worker production function as a graph. In the figure, we The Per-Worker Production Function measure capital per hour worked along the horizontal axis and real GDP per hour worked along the vertical axis. Letting K stand for capital, L stand for labor, and Y stand for real GDP, real GDP per hour worked is Y/L, and capital per hour worked is K/L. The curve represents the production function. 2. ...lead to diminishing Use the figures to help determine which one of the following statements is true: increases in output per hour worked. O A. An increase in capital per hour worked from $30,000 to $40,000 decreases real GDP per hour worked from $475 to $350. O B. An increase in capital per hour worked from $20,000 to $30,000 increases real GDP per hour worked from Real GDP per hour worked, Y/L 4757 $200 to $350. O C. Each $10,000 increase in capital per hour worked results in an equal increase in output per work. O D. None of the statements listed above are true. 200... Equal increases capital per worker. $20.000 30.000 40.000 50,000 Capital per hour worked, K/L Click to select your answerUse the data for Canada in this table to answer the following questions. Real GDP per Capita Year (in 2005 us dollars] 2010 $36,466 2011 37,176 2012 37,442 2013 37,754 2014 38,293 a. The percentage change in real GDP per capita between 2010 and 2014 was 'Ha. (Round your response to two decimal pieces.) b. The average annual growth rate in real GDP per capita between 2010 and 2E 14 was 3%. (Hint. Remember that the average annual growth rate for relatively short periods can be approximated by averaging the growth rates for each year during the peliod.) (Round your response to MD decimal! pisses.) Why does knowledge capital experience increasing returns at the economy level while physical capital experiences decreasing returns? At the economy level, knowledge cap ital, excluding the effects of patents and copyrights, is V and V Physical capital is V and