1. Explain and show your calculations on which country would be better off in 50 years. Country A has a current GDP per capita of $41,000 and a growth rate of 2% (as you should know, these are about current U.S. GDP per capita and its average annual growth over the last 50 years) and country B has a current GDP per capita of $10,000 and is growing at 5% (this is roughly Botswana)? While not graded, did this result surprise you?

1. Why is GDP per capita a better measure of well-being in a country than its natural resources?

1. When would you use the Rule of 72?

1. Say that two countries had GDP per capita of $10,000 50 years ago and today one has GDP per capita of $20,000 and the other of $40,000. Explain why this second country had or did not have twice the annual growth rate of the first country.