Suppose a Panel of Economists Predicts That a Nation's Real

question 66

Multiple Choice

Suppose a panel of economists predicts that a nation's real GDP per capita will have an average annual growth rate of 2%. According to the rule of 70, how many years will it take for this nation's real GDP per capita to double?

• A)35
• B)70
• C)140
• D)20

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Definitions:

Capital

Assets used for the production of goods and services, including buildings, machinery, and equipment.

Corn

Corn, also known as maize, is a cereal plant that yields large grains, or kernels, set in rows on a cob, and is one of the world's major food crops.

Production Functions

Mathematical models that describe the relationship between input factors (like labor and capital) and the output of goods or services.

Technically Feasible

Refers to a project or proposal that is possible and practical to achieve with the current level of technology.