This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is true of creative destruction? A) Creative destruction is ... (Read 45 times)

cool

  • Hero Member
  • *****
  • Posts: 570
Which of the following statements is true of creative destruction?
 
  A) Creative destruction is encouraged in economies with extractive institutions.
  B) Creative destruction is a phenomenon that was mostly prevalent before the year 1800.
  C) Creative destruction is generally bad for an economy.
  D) Creative destruction creates losses for some economic agents and benefits for others.

Question 2

Polonia produces two goods - X and Y. The quantity produced of the two goods and their prices in two different years are given in the table below:
 
  Year Good X Price Good X Quantity Good Y Price Good Y Quantity
  1 10 100 12 250
  2 25 120 22 300
 
  i) Calculate the real GDP of Polonia in Year 2 taking Year 1 as the base year.
  ii) What is the growth rate of Polonia's real GDP between Year 1 and Year 2?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dreamfighter72

  • Sr. Member
  • ****
  • Posts: 355
Answer to Question 1

D

Answer to Question 2

i) Real GDP is the total value of a country's output using base year prices. In this case, the base year is Year 1. Therefore, real GDP of Polonia in Year 2 is 120  10 + 300  12 = 1,200 + 3,600 = 4,800.
ii) Polonia's real GDP for Year 1 is 100  10 + 250  12 = 1,000 + 3,000 = 4,000 and for Year 2 is 4,800. The growth rate of Polonia's GDP is (4,800 - 4,000)/4,000 = 0.2 or 20.




cool

  • Member
  • Posts: 570
Reply 2 on: Jun 30, 2018
Gracias!


laurnthompson

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

For a complete list of videos, visit our video library