In this section we defined a poor or less-developed country as a country with a low per capita GDP

Economics Aug 28, 2020

In this section we defined a poor or less-developed country as a country with a low per capita GDP. Does it follow that the people in a country with a low per capita GDP are not as happy as the people in a country with a high per capita GDP? Explain your answer.

Application. Suppose the United States buys 1 million cars from Japan each year. If the dollar depreciates relative to the yen, will Americans buy more or fewer than 1 million cars from Japan? Explain your answer.