Measuring Economic Growth in Global Economy and Developing and Transitional Economies

1. The GI Bill provided educational opportunities to many young men returning from military service. Using a production possibilities curve, demonstrate how the GI Bill affected economic growth and explain your answer.
2. Why is China still poor in per capita terms despite having the second-largest economy in the world in terms of real GDP?
3. Does the political freedom existing in democracies always aid economic growth?
4. What is the relationship between savings, capital formation, and consumption?
5. According to Malthus, how do economic growth and population relate to each other?

Sample Solution