Answer:
Number of years requires doubling the GDP:
The real GDP of the United State is growing annually at a rate of around 2 percent, the numbers of year required to double the GDP can be calculated by using the Rules of 70.
Rules of 70:
…… (1)
Substitute the respective values in Equation (1) to obtain the require number of years to double the GDP.
It takes
years to double the GDP of the United State.
Thus, the option 'b' is correct.
Answer:
Foreign entity's earnings in domestic territory:
Gross domestic product (GDP) refers to the market value of all final goods and services produced in an economy during an accounting year. In contrast, Gross national product (GNP) refers to the market value of all final goods and services produced with in a nation plus income earned by its citizen located in abroad and minus income of non-resident located in that country.
A company form Japan expands its car factory in the United States. The income earn from the factory will add to the GDP of the United State and subtract from the GNP of the United State. Therefore, increase in GDP of the United State is seems to be larger than GNP.
Thus, the option 'c' is correct.
Answer:
College education is one source of human capital. Human capital is the knowledge and skills that workers acquire through education, training and experience. Human capital is one of the four factors to determine productivity. Human capital also has positive externality. When a worker with college degree discovers new way of doing a job more efficiently the knowledge will spread to the whole firm and society, which brings more socially benefit than the benefit that the college degree holder receives. Hence, college degree is a form of capital.