Gce Model Questions Vol1 2017 Economics Question 45

Practice objective / multiple choice question 45 from the 2017 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2017 Economics Objective / Multiple Choice Hard Difficulty
Question 45 GCE_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

Country Z has a current GNI per capita of £8,000 and a population growth rate of 2 % per year. It wishes to raise GNI per capita to £12,000 within 10 years. Assuming the Harrod‑Domar model with a capital‑output ratio of 3 and no depreciation, what minimum proportion of GDP must be saved and invested each year to achieve this target?

Answer Options

Correct Answer A. Approximately 18.4 % of GDP must be saved and invested each year.
B. Approximately 12.5 % of GDP must be saved and invested each year.
C. Approximately 15.0 % of GDP must be saved and invested each year.
D. Approximately 22.0 % of GDP must be saved and invested each year.
Correct Answer
A
Correct Option:
Approximately 18.4 % of GDP must be saved and invested each year.

About This Question

This is Gce Model Questions Vol1 2017 Economics Question 45. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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