## Principles of Economics: Problems: Global Economic Growth

In 8300 BC there were roughly 5 million people in the world—with an average standard of living of about $500/year. In 1700 there were roughly 640 million people in the world—with an average standard of living of about$500/year. In 1900 there were roughly 1.6 billion people—with an average standard of living of about $565/year. Today there are roughy 7.2 billion people— with an average material standard of living of$8035 dollars per year.

1. Use the Rule of 72 to calculate the average population growth rate and the average global real GDP growth rate between 8300 BC and 1700 AD.

2. Use the Rule of 72 to calculate the average global real GDP growth rate between 1700 and 1900 AD.

3. Use the Rule of 72 to calculate the average global real GDP growth rate between 1900 and 2012.

4. How much faster has global real GDP growth been over 1900-2012 than it was over 8300 BC-1700 AD?

5. How much faster has global real GDP growth been over 1900-2012 than it was over 1700-1900?

6. What would global real GDP be in 2100 if it were to grow as rapidly between now and 2100 as it grew from 1900-2012?

7. If there are 10 billion people in the world in 2100 and if global real GDP be in 2100 if it were to grow as rapidly between now and 2100 as it grew from 1900-2012, what would average living standards be in 2100?

8. Why do they call it the “Industrial Revolution”?