Question

HW Measuring Total Output & Income

                                    A                                              B          
GDP ($millions)                       1000000          1050400          250000            288000
population (millions)                20                    20.2                 50                    60
GDP/pop ($thousands)          50,000__          52,000__          5,000 __          4,800 __

Economy A is a developed economy while B is a developing economy. Both are observed above at two points in time.                                                               
1)Which economy is bigger? A
2)Which economy grew? (both, neither, A, B) Both
3)Which economy added more output? 
4)Which economy had greater percentage growth?
5)Which has more people? B
6)Which population grew? (both, neither, A, B) Both grew but B grew more (50 to 60)
7)Which population had greater percentage growth?
8)Which had GDP per capita growth? (both, neither, A, B)   A
9)Which had more per capita? A

Answer 1

Ans. 1) Economy A is bigger because its GDP size is greater than Economy B

Ans. 2) Economy A

change in GDP = $1050400 -$ 1000000

= $ 50400

Economy B

change in GDP =$288000 -$250000

= $ 38000

hence, both economies grew.

Ans.3) Economy A added more output(i.e. $50400) than the economy B(i.e. 38000)

Ans. 4) Economy A

GDP% = change in GDP/ initial GDP x 100   

= 50400 / 1000000 x 100

= 5.04 %   

Economy B

GDP% = change in GDP/ initial GDP x100

= 38000 / 250000 x 100

= 15.2 %

hence, Economy B had greater percentage growth in GDP i.e. 15.2 %

Ans. 5) Economy A   

change in populations(millions)= 20.2 -20   

= 0.2 millions

Economy B

change in population( millions) = 60-50

= 10 millions

hence, Economy B has more people.

Ans. 6) from the last part, it is cleared that the population grew in both country but grew more in B (i.e. 10 million)

Ans. 7) Economy A   

population % = 0.2 millions / 20millions x 100   

= 1 %   

Economy B

population % = 10millions / 50millions x 100

= 20 %

hence, Economy B had greater population growth i.e. 20%

Ans. 8) Economy A   

GDP per capita growth % = 52000- 50000/50000 x 100  

= 4%   

Economy B

GDP per capita growth % = 4800 - 5000/5000 x 100

= (-) 4%

hence, country A had GDP per capita growth i.e. 4%

Ans. 9) Economy A   

GDP per capita =$52000- $50000

= $2000 thousand   

Economy B

GDP per capita= $4800 - $5000

= (-)$200 thousand

hence, Economy A had more per capita GDP.