Neco 2018 Economics Question 5

Practice objective / multiple choice question 5 from the 2018 Neco Economics examination.

Neco 2018 Economics Objective / Multiple Choice Hard Difficulty
Question 5 NECO • 2018 • ECONOMICS • objective

Country A has a current GDP per capita of \(\$2{,}500\). It aims to reach \(\$5{,}000\) in 10 years. The baseline real growth rate of GDP per capita is 2 % per annum. The government can raise the growth rate by \(0.5\)% per year for every 2 % increase in the proportion of the population completing secondary education. Currently 30 % complete secondary education, and the government plans to raise this proportion linearly to 38 % over the 10‑year period. Is the target achievable? Show all calculations.

Answer Options

A. Required average annual growth ≈ 6.5 %; achievable average growth ≈ 3 %; therefore the target is not achievable.
B. Required average annual growth ≈ 7.18 %; achievable average growth ≈ 4 %; therefore the target is not achievable.
C. Required average annual growth ≈ 7.18 %; achievable average growth ≈ 3 %; therefore the target is achievable.
Correct Answer D. Required average annual growth ≈ 7.18 %; achievable average growth ≈ 3 %; therefore the target is not achievable.
Correct Answer
D
Correct Option:
Required average annual growth ≈ 7.18 %; achievable average growth ≈ 3 %; therefore the target is not achievable.

About This Question

This is Neco 2018 Economics Question 5. It is one of the objective questions from the 2018 Neco Economics examination.

Difficulty level: Hard .

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