If the average annual growth rate in real GDP for a nation during the last decade was 4 percent per year and the average annual population growth rate was 3 percent per year during the same period,
then the average annual growth rate of per capita GDP was
A) 1.00 percent.
B) -1.00 percent.
C) 0.75 percent.
D) 1.33 percent.
Question 2
Refer to the above figures. A unit tax of 2 has been levied on a good. Which of the panels depict the effect of the taxes?
A) Panel 1
B) Panel 2
C) Panel 3
D) None of the diagrams reflect the effect of the tax.
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