Your friend argues real GDP per capita is a good measure of economic well-being, as it shows

the income levels of the country. Provide some counter arguments that show some limitations of

the GDP measure.

Question 5 (4 marks)

a. Based on the following table answer parts i and ii.

Country Current real per

capita income

Current growth

rate

Country 1 20,000 1.5%

Country 2 15,000 2%

Country 3 7,000 4%

i. Which country is the richest?

ii. Which country is advancing most quickly?

b. Suppose Country Alpha and Country Beta both have GDP per capita of $15,000. Country

Alpha's GDP per capita growth rate is 7% while for country Beta it is 2%. How long will

it take for each country to double their GDP per capita using the rule of 70