If population increases at an average rate of 2% per year and output increases at an average rate of 5% per year, then output per capita will double in

Question

Quizplus · Accepted Answer

The formula for calculating the number of years it takes for a variable to double is the rule of 72, which is calculated as 72 divided by the annual growth rate.

Using this formula for output per capita, we get:

72/ (5%-2%) = 24

Therefore, output per capita will double in 24 years. The correct answer is choice C.

If Population Increases at an Average Rate of 2% Per