In this assignment, you will examine GDP for different countries and the factors that lead to different rates of economic growth among countries and you will be asked for your economic advice. Please note that there are a total of five (5) questions (some with multiple parts) to which you must respond – ANSWER EACH NUMBERED QUESTION SEPARATELY. You MUST complete this assignment on your own – failure to do so is a violation of USF’s Academic Integrity Policies. Do not copy the table or the questions into the document you create – provide just your responses and clearly identify the question or part of a question to which you are responding.
1. Calculate the values for the blanks in the shaded areas of the table below (identify your responses in a logical fashion in your document): I will upload it as a photo.
2. Based on the information in the table and your calculations for Question #1:
Do any countries have positive net exports? __________________ Which one(s)?
Which country has the largest negative net exports? ____________________________________
3. Suppose that a country asks for your advice about trade. Policymakers in the country want information about the impact of trade on GDP and whether they should be concerned about negative (or positive) net exports. Using the information in the table above as your guide, what advice would you give?
4. Based on information from the World Bank, in 2018, GDP per capita was $62,794.6 in the United States and $64,581.9 in Singapore – very similar values (and relatively high values compared to many countries). But, the annual rate of GDP growth averages 2.3% in the United States and 2.7% in Singapore.
Would you predict the United States or Singapore to have a more rapid increase in the standard of living in the long run?
Discuss what evidence/theory from Chapter 7 you are using to support this prediction.
5. The United Nations Human Development Index (HDI) uses information about a country’s life expectancy at birth (health), expected years of schooling and mean years of schooling (education), and Gross National Income per capita (standard of living) to create a measure that ranges from 1 (very high) to 0 (very low). For 2017, the United States had a value of 0.924, compared to 0.926 for Canada and 0.922 for the United Kingdom – very similar values, although not the highest of all countries.
Suppose a developing country (such as Eritrea with a value of 0.440 or Haiti with a value of 0.498) asks for your advice on which country it should try to emulate in order to increase its level of development and economic growth. Which of the three countries above would you choose? Explain what additional information about each country would be important to making this assessment.