Tackle the Test: Free-Response Questions
Question
Refer to Figure 37.3, reproduced below, to answer each of the questions that follow.
If growth continued at the rates shown in the figure, which of the seven countries would have had a lower real GDP per capita in 2014 than in 2013? Explain.
If growth continued at the rates shown in the figure, which of the seven countries would have had the highest real GDP per capita in 2014? Explain.
If growth continues at the rates shown in the figure, real GDP per capita for which of the seven countries will at least double over the next 10 years? Explain.
Rubric for FRQ 1 (6 points)
1 point: Zimbabwe
1 point: It has a negative average annual growth rate of real GDP per capita.
1 point: It cannot be determined.
1 point: The figure provides data for growth rates, but not for the level of real GDP per capita. Higher growth rates do not indicate higher levels.
1 point: China
1 point: A country has to have an average annual growth rate of 7% or higher for real GDP to at least double in 10 years. China has a growth rate of 8.9%.
Question
Increases in real GDP per capita result primarily from changes in what variable? (Hint: This is a general source of long-
run growth and not a particular input such as capital.) Define that variable. Increases in what other variable could also lead to increased real GDP per capita? Why is this other factor less significant? (4 points) Rubric for FRQ 2 (4 points)
1 point: Increases in real GDP per capita result primarily from changes in productivity (or labor productivity).
1 point: Productivity is defined as output per worker or output per hour.
1 point: Increased labor force participation could also lead to higher real GDP per capita.
1 point: The rate of employment growth is rarely very different from the rate of population growth, meaning that the corresponding increase in output does not lead to an increase in output per capita.