When using a logarithmic scale to plot output per capita over time, an upward- sloping curve that becomes increasingly steep indicates:
A) output per capita is growing by a constant percentage each year.
B) output per capita is not defined.
C) output per capita is growing by an increasing percentage each year.
D) output per capita is not changing.
E) output per capita is growing by a constant amount each year.

Question

Quizplus · Accepted Answer

An upward-sloping curve on a logarithmic scale indicates that output per capita is growing exponentially. As the curve becomes increasingly steep, this suggests that the rate of growth is increasing each year. A constant percentage growth rate would result in a straight line on a logarithmic scale, while a constant amount growth rate would result in a curve that flattens over time. Therefore, option C is the best choice.

When Using a Logarithmic Scale to Plot Output Per Capita