Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

The table presents the data for consumption, capital formation and depreciation in four economies, with all values given in US $. If technology is assumed to stay the same, which economy is most likely to experience economic growth?

  • Aconsumption $100m; capital formation $10m; depreciation $20m
  • Bconsumption $500m; capital formation $200m; depreciation $100m
  • Cconsumption $1,000m; capital formation $1,200m; depreciation $1,400m
  • Dconsumption $20,000m; capital formation $5,000m; depreciation $6,000m

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