Question

Which of the following statements is true?

A. Life expectancy around the world was much higher 70 years ago than it is today.

B. Life expectancy around the world was much lower 70 years ago than it is today.

C. There is no gap between the life expectancy rates in rich and poor nations today.

D. Global drug innovation helped lower the life expectancy rate around the world.

Consider two countries: A and B. In country A, the annual growth rate of GDP per capita is 2%, while in country B the annual growth rate of GDP per capita is 6%. At present, country B's GDP per capita is higher than country A's GDP per capita. Which of the following statements will then be true?

A. The gap between country A's GDP per capita and country B's per capita will decrease over time.

B. The gap between country A's GDP per capita and country B's per capita will widen over time.

C. The gap between country A's GDP per capita and country B's per capita will remain the same.

D. The gap between country A's GDP per capita and country B's GDP per capita will decrease for the first few years and then will increase later.

Consider two countries: country A and country B. At the beginning of year 2010, the GDP per capita in both countries is $2,400. The annual growth rate of output in country A is 3%, while the annual growth rate of output in country B is 5%. What will be the GDP per capita of country B at the beginning of year 2012?

A. $2,450.65

B. $2,555.15

C. $2,646

D. $28,82.85

The savings rate in an economy equals:

A. GDP minus aggregate consumption.

B. GDP divided by aggregate savings.

C. aggregate savings multiplied by GDP.

D. aggregate savings divided by GDP.

Answer 1

Answer no. 1

correct answer : B

B. Life expectancy around the world was much lower 70 years ago than it is today

Option B is true because health care,sanity,health resources and research in medical field and proper medical infrastructure today is much better than of 70 years ago.

option A is false because today life expectancy is much more than 70 years ago due to better health facilities and better technology.

option C is false there is gap between life expectancy of poor and rich nations because rich nations has more resources and better health care than poor nations.

option D is false because global drug innovation discover new therapies thats helps in improving life expectancy.

Answer no. 2

Correct answer : B

B. The gap between country A's GDP per capita and country B's GDP per capita will widen over time.

because GDP growth rate of country B is higher than country A's GDP growth rate due to which GDP grows at higher rate and GDP gap will increase with time and the absolute GDP of country B is also higher as compared to country A's absolute GDP.

Answer no. 3

correct answer : C

C. $ 2646

calculation :

given- GDP per capita at the beginning of the year 2010 = $2400

annual GDP growth rate of country A=3%
annual GDP growth rate of country B=5%

GDP per capita for one year = GDP per capita of current year * (1+ Annual GDP growth rate)

so, at the beginning of the year 2011

country B's GDP per capita = $2400 * (1+0.05)

= $2520

at the beginning of the year 2012

country B's GDP per capita = $2520 * (1+0.05)

=$2646

Answer no. 04

Correct Answer : D

D. Aggregate savings divided by GDP.

To get saving rate we have to find aggregate savings and GDP and then devide aggregate savings by GDP .