esOn average, households in China save 40 percent of their annual income each year, whereas households in the United States saveless than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States.Use graphical analysis of "present goods" versus "future goods" to explain the differences in growth rates.Goods for the future (Capital)PPC310090-807060-50-40-30-20-1000Production Possibilities(United States)PPC₂PPC₁B10 20 30 40 50A6070Goods for the present80 90 100Future Goods10090-80-7060-50+4030-20-10-0PPC3PPC₂PPC₁B0 1020Instructions: Refer to the diagram on the left.Which point best represents the combination of present and future goods in the U.S.? (Click to select)Which dashed production possibilities curve best represents future growth in the U.S.?(Click to select)Instructions: Refer to the diagram on the right.Which point best represents the combination of present and future goods in China? (Click to select)Which dashed production possibilities curve best represents future growth in China? (Click to select)Production Possibilities30(China)40 50 60 70Present Goods8090 100

The production possibility frontier highlights the total number of goods that the economy could…

On average, households in China save 40 percent of their annual income each year, whereas households in the United States save less than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States. Use graphical analysis of "present goods" versus "future goods" to explain the differences in growth rates. Goods for the future PPC3 100 90- 80 70 60- 50- 40- 30- 20- 10 0 0 Production Possibilities (United States) (Capital) PPC₂ PPC₁ B A 10 20 30 40 50 60 70 80 90 100 Goods for the present Instructions: Refer to the diagram on the left. Which point best represents the combination of present and future goods in the U.S.? Which dashed production possibilities curve best represents future growth in the U.S.? Instructions: Refer to the diagram on the right. Which point best represents the combination of present and future goods in China? Which dashed production possibilities curve best represents future growth in China? Future Goods 100 90- 80 70 60- 50- 40- 30- 20- 10- 0 PPC3 PPC2 PPC₁ B 0 10 20 (Click to select) (Click to select) (Click to select) (Click to select) # Production Possibilities 30 (China) 40 50 60 70 Present Goods 80 90 100

On average, households in China save 40 percent of their annual income each year, whereas households in the United States save less than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States. Use graphical analysis of "present goods" versus "future goods" to explain the differences in growth rates. Goods for the future PPC3 100 90- 80 70 60- 50- 40- 30- 20- 10 0 0 Production Possibilities (United States) (Capital) PPC₂ PPC₁ B A 10 20 30 40 50 60 70 80 90 100 Goods for the present Instructions: Refer to the diagram on the left. Which point best represents the combination of present and future goods in the U.S.? Which dashed production possibilities curve best represents future growth in the U.S.? Instructions: Refer to the diagram on the right. Which point best represents the combination of present and future goods in China? Which dashed production possibilities curve best represents future growth in China? Future Goods 100 90- 80 70 60- 50- 40- 30- 20- 10- 0 PPC3 PPC2 PPC₁ B 0 10 20 (Click to select) (Click to select) (Click to select) (Click to select) # Production Possibilities 30 (China) 40 50 60 70 Present Goods 80 90 100

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 25CTQ: Refer back to the Work It Out about Comparing the Economies of Two Countries and examine the data...

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GRAPH Reset Capital Goods 17 Production Possibilities (Present) Production Possibilities (Future) 16 15 14 13 12 11 10 9 8 7 6 4 3 1 1 2 3 4 8 9 10 11 12 13 14 15 Consumption Goods More More Saving Consumption 1 2. 3 4 5 6 7 E CALCULATIONS Consumption Goods Produced 4.0 Capital Goods Produced 7.5 Instructions: Adjust the slider and gather information from the graph to answer the following questions. a) If a country produces 5 units of consumption goods, how many units of capital goods can it currently produce using all of its resources? b) If a country produces 6.1 units of capital goods, how many units of consumption goods can it currently produce? c) If a country produces 6.1 units of capital goods now, and it continues to produce 6.1 capital goods in the future, how many units of consumption goods can it produce in the future? report your answer to one decimal place d) If a country produces 9.4 units of capital goods now, and then it produces 6.1 capital goods in the future, how…
On average, households in China save 40 percent of their annual income each year, whereas households in the United States save less than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States. Use graphical analysis of “present goods” versus “future goods” to explain the differences in growth rates.
GRAPH Reset Capital Goods 17 Production Possibilities (Present) Production Possibilities (Future) 16 15 14 13 12 11 10 8 7 6 5 4 3 2 1 1 2 3 4 5 7 8 10 11 12 13 14 15 Consumption Goods More More Saving Consumption 1 2 3 4 5 6 7 CALCULATIONS Consumption Goods Produced 4.0 Capital Goods Produced 7.5 Instructions: Adjust the slider and gather information from the graph to answer the following questions. a) If a country produces 2 units of consumption goods, how many units of capital goods can it currently produce using all of its resources? 8.6 b) If a country produces 2 units of consumption goods now, and it continues to produce 2 consumption goods goods in the future, how many units of capital goods can it produce in the future? 15 report your answer to one decimal place c) If a country produces 3 units of consumption goods now, and then it produces 2 consumption goods in the future, how many units of capital goods can it produce in the future? 15 report your answer to one decimal place
565995 CALCULATIONS Capital Goods 16 755559 CH 14 13 12 11 10 0 1 2 More ← Saving 3 Consumption Goods Produced Capital Goods Produced 4 5 6 7 8 Production Possibilities (Present) Production Possibilities (Future) 9 10 11 12 13 14 15 Consumption Goods More Consumption 4.0 7.5 Help Save & Exit
Question Under what conditions would a transfer of income from the richest 10% of the population to the poorest 10% of the population increase aggregate consumption and decrease aggregate savings? Under what conditions would such a transfer decrease Consumption and increase Aggregate Savings? Carefully explain using graphical analysis where appropriate, making sure to define the key terms and relationships you use in your answer.
GRAPH SETTINGS Reset Country-X Initial Value ($50 – $10,000) 1,000.00 Value (thousands of dollars) [Country-X = Country-Y] Growth Rate: 3% 10 9 0.1% 10.0% 8 Country-Y 7 Initial Value 6 2,000.00 ($50 – $10,000) 4 Growth Rate: 1% 3 0.1% 10.0% 2 35.4 уrs. CALCULATIONS 0 5 20 35 40 10 15 25 30 Years Value in Country-X Country-Y 10 years $1,343.92 $2,209.24 20 years $1,806.11 $2,440.38 30 years $2,427.26 $2,695.70 Country-X Country-Y Instructions: Modify the settings in the interactive tool as needed to answer the questions below. Suppose country X currently produces $1800 of goods and services per year with a constant growth rate of 4.8% per year. Country Y's production is currently $4500 with growth of 3.0% per year. a) Using the rule of 72, how long does it take for country X's production to double? | years b) Using the rule of 72, how long does it take for country Y's production to double? | years c) Even if an intersection point does not appear on the graph, will the production level…
PLEASE ONLY ANSWER THE FILL-IN-THE-BLANK QUESTION; "The economic growth rate in Euronia in 2017 is ___ percent." Typed plzzzz And Asap
Refer to the Interactive below: Production Possibilities and Economic Growth II. GRAPH M CALCULATIONS Capital Goods DHEHBANGST 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 1 2 More → Saving 1 3 Consumption Goods Produced Capital Goods Produced 4 5 N Production Possibilities (Present) Production Possibilities (Future) 6 7 8 9 10 11 12 13 14 15 Consumption Goods 6 7 More Consumption 4.0 7.5 Reset Instructions: Adjust the slider and gather Information from the graph to answer the following questions. a) If a country produces 4 units of consumption goods, how many units of capital goods can it currently produce using all of its resources? 7.5 Ⓒ b) If a country produces 7.5 units of capital goods, how many units of consumption goods can it currently produce? c) If a country produces 7.5 units of capital goods now, and it continues to produce 7.5 capital goods in the future, how many units of consumption goods can it produce in the future? report your answer to one decimal place d) If a…
GRAPH SETTINGS Reset Country-X Initial Value ($50 – $10,000) 1,000.00 Value (thousands of dollars) [Country-X = Country-Y] Growth Rate: 3% 10 0.1% 10.0% 8 Country-Y 7 Initial Value 2,000.00 ($50 – $10,000) 5 4 Growth Rate: 1% 0.1% 10.0% 2 1 35.4 уrs. E CALCULATIONS 0 5 10 15 20 25 30 35 40 Years Value in Country-X Country-Y 10 years $1,343.92 $2,209.24 20 years $1,806.11 $2,440.38 30 years $2,427.26 $2,695.70 Country-X Country-Y Instructions: Modify the settings in the interactive tool as needed to answer the questions below. Suppose countries X and Y each produce $2,000 of goods and services per year. Country X experiences 2% growth per year, while country Y experiences 4% growth per year. a) What is Country X's production after 20 years? $[ b) What is country Y's production after 20 years? c) If two amounts are initially equal but one grows twice as fast (ex: 2% growth versus 4% growth), the amount that grows faster will have increased by (Click to select) V twice as much.
An economy starts off with a GDP per capital of 12,000 euros. How large will the GDP per capita be if it grows at an annual rate of 3 for 10 years? 3 for 30 years? 6 for 30 years?
Refer back to the Work It Out about Comparing the Economies of Two Countries and examine the data for the two countries you chose. How are they similar? How are they different?
Graphical 4. Plot production function, savings function, and depreciation function in a slow model and graphically show the effects (transition) of steady state capital in following situations: (a) Contractionary monetary policy ⇒ real interest rate increases increased level of savings. (b) Increase in the population growth rates. (c) Increase in the technology parameter. [Note: Graphs without proper labels will not get full credit.]