“There is a ......... correlation between GDP per capita and Size of Government (measured by Revenues...

“There is a ......... correlation between GDP per capita and Size of Government (measured by Revenues as a percentage of GDP). There is a ......... correlation between GDP per capita and Redistribution (measured by difference between Pre- and Post-tax-and-transfer Income Gini).”

Which of the following combination of words correctly fill in the blanks?

A.Negative, Negative.

B.Positive, Postitive.

C.Positive, Negative.

D.None of the others.

Expert Solution

Answer: B

EXPLAINATION: There is a positive correlation between GDP per capita and Size of Government (measured by Revenues as a percentage of GDP).

As Rule of law is an important factor in determining income per capita.Also according to Wagner's law Size of the government and income per capita are positively correlated.

There is a positive correlation between GDP per capita and Redistribution (measured by difference between Pre- and Post-tax-and-transfer Income Gini).

GDP per captial and redistribution which helps in reducing inequalities in the society, further help in economic growth via skilled labour and better Human development indicators leads to rise in GDP per capita.

Rahul Sunny answered 2 years ago

The correlation coefficient between GDP per capita and openness from 2003 to 2015 for Italy is...

The correlation coefficient between GDP per capita and openness from 2003 to 2015 for Italy is 0.534. The correlation coefficient between GDP per capita and openness from 2003 to 2015 for Sweden is 0.5927. Using the data above, explain in up to 200 words the relationship between openness and economic development for each of the two countries

The long-run growth is measured as the increase in real GDP per capita and this measure...

The long-run growth is measured as the increase in real GDP per capita and this measure has changed over time and it also varies across countries. A country’s standard of living depends on its ability to produce goods and services (productivity). How do we measure long-term economic growth of a country? What are the key determinants of long-run economic growth? What is the relationship between economic growth and productivity? What is the major source of growth in labor productivity?

What is the difference between GDP and GDP per capita? When and why would an economics...

What is the difference between GDP and GDP per capita? When and why would an economics what to use GDP vs GDP per a capita. In the example below let’s say that the economy’s real GDP is $50,000 in year 1 and $55,000 in year 2. What is the growth rate of its GDP? Assume that population was 100 in year 1 and 105 in year 2. What is the growth rate in GDP per capita? please only answer if...

In 1980's India's GDP per capita and China's GDP per capita were about the same, with...

In 1980's India's GDP per capita and China's GDP per capita were about the same, with the former slightly higher than the latter. In the next three decades, however, China economy grow faster than India economy. In this question, I want you to provide explanations to explain why China economy grow faster than India economy. Your explanations should be based on the course materials and the facts I provide below. In other words, you do not need to do any...

Consider the following data on real GDP per capita in: Year Per Capita Real GDP 1950...

Consider the following data on real GDP per capita in: Year Per Capita Real GDP 1950 14 339 1960 17 351 1970 23 790 1980 30 732 1990 35 868 2000 43 288 2010 46 406 2011 47 554 2012 47 741 2013 48 066 2014 48 780 a) Calculate the percentage growth rates in real GDP per capita in each of the years 2011 through 2014, from the previous year. b) Now, instead of calculating the annual percentage growth...

the impact of coronavirus on gdp and gdp per capita in china

Why large population decreases GDP per capita ? And what is the relation between Real GDP...

Why large population decreases GDP per capita ? And what is the relation between Real GDP and GDP per capita ?

If GDP per capita rises by 2% between 2015 and 2016, which of the following is...

If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true? Select one: a. The population has decreased. b. The population has increased, but by less than 2%. c. None of these is necessarily true. d. Real GDP has risen by more than 2%. The key factors in raising standards of living in low-income countries have been increases in Select one: a. foreign aid and population. b. capital accumulation and the money supply....

the GDP per capita of a country is lower than that of france. if the GDP...

the GDP per capita of a country is lower than that of france. if the GDP per capita of the country is adjusted for PPP, the country's revised GDP is higher than that of france. which of the following is most likely true about the country? a. cost of living in the country is higher than that of france b. the cost of living in the country is approximately equal to that of france c. the cost of living in...

The average per Growth Rates of Real, per capita GDP between 2000 and 2008 in Low-income...

The average per Growth Rates of Real, per capita GDP between 2000 and 2008 in Low-income and Middle-income countries where 4.7% and 6.1% respectively. This observation is consistent with the Convergence hypothesis.

Question