• Economic growth is a goal for most nations. At the same time, uncontrolled economic growth poses a threat to natural resources. For this reason, it is important that politicians and their constituencies understand how policies to stimulate growth may influence future economic activity.

• TASK: We define an index for production (Gross Domestic Product, GDP) equal to 1 in 1950. Assume that GDP grows at a rate of 4 percent per year — in all years. For the following task, do not use a calculator. Report a quick estimate based on whatever information you have from earlier (feelings or facts). In other words, use the information you have relied on previously whenever you have been thinking about the consequences of economic growth. With the 4% growth rate and the starting point for GDP of 1.0 in 1950, what will GDP be in 2000, 2050 and 2100?

As for all challenges at the beginning of the chapters, you get no credit for this task, it is only for your own good.