-Refer to the above table. Suppose one country has a per capita real GDP of $1000 and another has a per capita real GDP of $10,000, or ten times larger. If both countries have a growth rate of 5 percent, how much larger will per capita real GDP be in the second country be than the first after 50 years?
A) 4 times larger
B) 5 times larger
C) 8 times larger
D) 10 times larger

Question

-Refer to the above table. Suppose one country has a per capita real GDP of $1000 and another has a per capita real GDP of $10,000, or ten times larger. If both countries have a growth rate of 5 percent, how much larger will per capita real GDP be in the second country be than the first after 50 years?
A) 4 times larger 
B) 5 times larger 
C) 8 times larger 
D) 10 times larger

Quizplus · Accepted Answer

After 50 years, both countries will have grown by the same percentage due to the 5 percent growth rate. The ratio of their per capita real GDPs will remain the same, hence the second country will still be 10 times larger than the first.

-Refer to the Above Table