Neco 2021 Economics Question 14

Practice objective / multiple choice question 14 from the 2021 Neco Economics examination.

Neco 2021 Economics Objective / Multiple Choice Hard Difficulty
Question 14 NECO • 2021 • ECONOMICS • objective

Country X had a GNI per capita of \(\$2,500\) in 2015. The government aims to double it to \(\$5,000\) by the end of 2030 (15 years). Population is projected to grow at a constant rate of \(2\%\) per year. (i) What average annual real GNI growth rate (overall GNI) is required to meet the target? (ii) What is the implied average annual real GNI per‑capita growth rate? (iii) Given that the historical average real GNI growth rate has been \(4\%\) per year, assess the feasibility of the target.

Answer Options

A. Required overall GNI growth ≈ 6.0 % per annum; implied per‑capita growth ≈ 4.0 % per annum; target feasible if productivity improves beyond historic 4 % growth.
B. Required overall GNI growth ≈ 5.5 % per annum; implied per‑capita growth ≈ 3.5 % per annum; target marginally feasible given historic 4 % growth.
C. Required overall GNI growth ≈ 7.2 % per annum; implied per‑capita growth ≈ 5.0 % per annum; target unlikely but possible despite historic 4 % growth.
Correct Answer D. Required overall GNI growth ≈ 6.8 % per annum; implied per‑capita growth ≈ 4.7 % per annum; target not feasible given historic 4 % growth.
Correct Answer
D
Correct Option:
Required overall GNI growth ≈ 6.8 % per annum; implied per‑capita growth ≈ 4.7 % per annum; target not feasible given historic 4 % growth.

About This Question

This is Neco 2021 Economics Question 14. It is one of the objective questions from the 2021 Neco Economics examination.

Difficulty level: Hard .

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