Productivity and output around the world
1). Of the major economies in the world, the United Kingdom had the highest growth rate of real GDP per capital between 1982 and 2008. True of False
2). The United Kingdom experienced average annual real GDP per capita growth of 2.3% between 1982 and 2008. Which of the following helped most to contribute to that growth.
a). Privatization of previously nationalized industries.
b). Spending on research and development.
c). Re-distributive policies designed to decrease poverty.
GDP refers to the gross domestic product produced in an economy during a year. It is used to measure the economic development of a country. A country with high GDP growth rate is assumed to have a good standard of living. It is dependent on the efficient use of resources.
Answer and Explanation:
1. The statement is FALSE because America and Japan observed the highest growth rate in real GDP. The investment in various sector increased their output.
2. Option (B) Spending on research and development. is correct
This option is correct because the United Kingdom invested a huge amount in research of new technology. The items of UK are highly sophisticated as compared to product of other nations.
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from Economics 102: MacroeconomicsChapter 10 / Lesson 2