Question

Chinese economic growth is the outstanding feature of the world economic scene over the past two decades.

a. In 2014, U.S. output was $17.4 trillion, and Chinese output was $10.4 trillion. Suppose that from now on, the output of China grows at an annual rate of 6.5% per year, whereas the output of the United States grows at an annual rate of 2.2% per year. These are the values in each country for the period 2010–2014 as stated in the text. Using these assumptions and a spreadsheet, calculate and plot U.S. and Chinese output from 2014 over the next 100 years. How many years will it take for China to have a total level of output equal to that of the United States?

b. When China catches up with the United States in total output, will residents of China have the same standard of living as U.S. residents? Explain.

c. Another term for standard of living is output per person. How has China raised its output per person in the last two decades? Are these methods applicable to the United States?

d. Do you think China’s experience in raising its standard of living (output per person) provides a model for developing countries to follow?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

a. China's economy is growing at much faster rate than US. If it continues with current rate it will cross US output in 2030.So if the rate is constant for next 100 year China will be so much ahead of US, but according to economist Chinese economy would not go at the same rate because due to different policies like one child policy because of that at some time there will be more and more old person in China that will create the problem for economy.

b. As we know China has four times larger interms of population , so it is impossible to meet the standard of American people because their per capita income is way more higher then the Chinese people.  At current if we talk about per capita income of United States is 6.38 and 3.32 times greater than of China in nominal and PPP terms, respectively. US is the 8th richest country of the world whereas China comes at 72th rank. On PPP basis, United states is at 12th position and China is at 75th.

C. Due to will power of the government and reforms China has raised output per person . These are the places where reforms had been done.

  • Labour supply. ...
  • Wages and unemployment. ...
  • Female participation in the workforce. ...
  • Political system. ...
  • Strong leadership. ...
  • Free market economics. ...
  • Export-led growth. ...
  • Special Economic Zones and FDFD

D. Yes ofcourse we should learn from Chinese economic model and they have done work in improving the standard of living and worked toward increasing output level but there are dark side too but we have grab and learn only positive things.

Add a comment
Know the answer?
Add Answer to:
Chinese economic growth is the outstanding feature of the world economic scene over the past two...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Chinese economic growth is the outstanding feature of the world economic scene over the past two...

    Chinese economic growth is the outstanding feature of the world economic scene over the past two decades. In 2010, U.S. output was $14.7 trillion, and Chinese output was $5.8 trillion. Suppose that from now on, the output of China grows at an annual rate of 10.5% per year, whereas the output of the United States grows at an annual rate of 2.6% per year. These are the values in each country for the period 2000–2007. Using these assumptions and a...

  • When will Chinese output catch up with U.S output?

    In 2006, U.S. output was $13.2 trillion, and Chinese output was $2.8 trillion. Supposethat from now on, the output of China grows at an annual rate of 8.8% per year (roughlywhat it has done during the past decade), while the output of the United States grows at an annual rate of 3.4% per year.Using these assumptions and a spreadsheet, plot U.S. and Chinese output over the next100 years. How many years will it take for China to have a level...

  • Economic growth 4) Based on information from the World Bank, in 2016, GDP per capita was...

    Economic growth 4) Based on information from the World Bank, in 2016, GDP per capita was $57,467 in the United States and $59,977 in Iceland-very similar values (and high values compared to many countries). But, the annual rate of GDP growth averages 0.9% in the United States and 6.1% in Iceland. Would you predict the United States or Iceland to have a more rapid increase in the standard of living in the long run? evidence/theory from Chapter 11 you are...

  • Case assignments must be completed with a written 2-page study on the assigned case questions in...

    Case assignments must be completed with a written 2-page study on the assigned case questions in the textbook. The format requested for these assignments is based on elaborating and including two basic parts in the essay: 1) in a bullet presentation style (one phrase each bullet), list a summary of the key issues, situations, problems, opportunities and threats you may identify as relevant; 2) answer all the questions listed in each case in two or three sound paragraphs. Use the...

  • Question 21 (1 point) Recently, the Chinese government has acknowledged that its GDP growth rate for...

    Question 21 (1 point) Recently, the Chinese government has acknowledged that its GDP growth rate for 2015 will fall to 7%, which is substantially below China's recent annual growth rates, including that for 2014 (Wall Street Journal, March 5, 2015). Over the past several decades, China has invested heavily in capital, increasing its capital stock. However, its economic system provides entrepreneurs little incentive to work to develop new technologies. What is the effect of the Chinese government doubling its spending...

  • Reread the country focus “Is China Manipulating Its Currently in Pursuit of a Neo-Mercantilist Policy?” Define...

    Reread the country focus “Is China Manipulating Its Currently in Pursuit of a Neo-Mercantilist Policy?” Define Neo- Mercantilist policy in your own words. Do you think China in pursuing a currency policy that can be characterized as neo-mercantilist? (100words) what should the United States, and other countries, do about this? (100words) Is China Manipulating Its Currency in Pursuit of a Neo-Mercantilist Policy? China's rapid rise in economic power has been built on export-led growth. For decades, the country's exports have...

  • China Pours 9218 Billion Into the Economy as Growth Slows HONG KONG With the Chinese economy...

    China Pours 9218 Billion Into the Economy as Growth Slows HONG KONG With the Chinese economy beginning the new year The central bank has made it clear that this wasn't freleasing on a decidedly downbeat note,consistentiy downbeat big, inefficient companies or ntO tone of the data released sine investment bubbles instéad of to the floodwaters by providing. ue stimulus comparable to Beijing's leaders are injectingthen will only have undertined thew more than $200 billion into ltsf strains the economy is...

  • As a digital retailer,how does alibaba provide value to Chinese consumers ? whit sets of values...

    As a digital retailer,how does alibaba provide value to Chinese consumers ? whit sets of values are unique to the chinese market? Given that alibaba does not own or distribute any of the merchandise exchanged on its sites, describes what factors had to develop for the company to succeed. Analyze Alibaba's business model relative to all the different forms of digital and online marketing covered in this chapter. Can alibaba succeed in countries outside of China? Why or why not?...

  • 1. U.S. GDP includes estimates of the value of items that are produced and consumed at...

    1. U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance. a. True b. False 2. If the U.S. government reports that GDP in the third quarter was $16 trillion at an annual rate, then the amount of income and expenditure during quarter three was $4 trillion. a. True b. False 3. If consumption is 57000, exports are $600. government purchases are $2000. government transfers are $900, imports...

  • The Economist article “Indonesias economic growth is being held back by populism,” (see below) highlights a...

    The Economist article “Indonesias economic growth is being held back by populism,” (see below) highlights a number of features of Indonesias economic growth potential (as of January, 2019). After reading the article, evaluate the quality of Indonesia’s policy environment. Specifically, consider which aspects of Indonesia’s policy and demographic setting are conducive to economic growth and which are inhibiting economic growth? Begin with a brief summary of the requirements for economic growth that are explained in Modules 20 and 22. When...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT