EXPLAIN WHY 1 TRUEFALSEUNCERTAIN a Despite the Great Depress

EXPLAIN WHY!!!!

1 TRUE/FALSE/UNCERTAIN a. Despite the Great Depression, Canadian output was higher in 1940 than in 1929 b. On a log scale, a variable that increases at 5% a year will move along an upward-sloping line, with slope 0.05 If Japan had continued to grow at the same rate during 1974 to 2010 as it had during 1950 to 1973, its output per capita in 2010 would have been more than twice U.S. output per capita. The price of food is higher in poor countries than in rich countries. Output per capita in most countries in the world is con- verging to the level of output per capita in the United States c. d. e. f. Capital accumulation does not affect the level of output g. The aggregate production function is a relation among h. Because eventually we will know everything, technologi in the long run. Only technological progress does. output, labour, and capital. cal progress will end, and growth will eventually end as

Solution

e. Output per capita in most countries in the world is converging to the level of output per capita in the United States- False

Explanation: Most of the countries of the world do not even come close to US GDP per capita. Even as many developing economies have high growth rates, the US wealth and output per capita is the highest. Some reasons for this are: Many developing countries have high population, unemployment, relatively low infrastructure and technology. Ither developed countries are limited by resource availability and other factor endowments. The US on the other hand has technological advantage, large land area, good amount of natural resources etc. which have contributed to its position as the largest economy. The GDP of US is larger than even the European Union.

f. Capital accumulation does not affect the level of output in the long run. Only technological progress does. - False.

Explanation : Long run level of output is determined by the level of productivity which is determined by the ratio of economic outputs to inputs. Inputs include capital, labor, technology and raw materials. Higher capital accumulation can lead to efficiency by substitution of capital for some units of labor. Capital accumulation is also a factor affecting technological growth as it is required to purchase or develop machinery and other technologies that affect the productivity.

h. Because eventually we will know everything, technological progress will end, and growth will eventually end as well. - False.

Explanation: Technological advancement is something that will last forever. The rate of advancement may vary from one invention or discovery to another higher and more advanced version but technological growth will continue. Humans have come to this point from a point where we were just hunter-gatherers. It is a result of evolution of our species and discovery of new ways of using elements and things around us. We have existed for over 3.3 million years, the modern human for over 200,000 years. Humanity\'s lifetime as compared to the age of the universe is very miniscule and hence the possibilities are endless. Thus, to say that growth of technology will end is incorrect.