consider the folloWing data on two fICtional countries: Tand Country 1 Country 2 Output per worker (y) Physical Capital per Worker, k Human Capital per Worker, h 120 80 75 50 25 75 If the production function is y = Ak°h!-a, where a = 0.5., then if all differences in output %3D were due to differences in factor accumulation then country 1 output would be times greater than in Country 2 1.70 0.71 1.00 0.59 O O
Q: Growth that is independent of any factors in the economy is growth. a) endogenous O b) random c)…
A: In an economy, economic growth is explained in different ways according to the contribution of…
Q: 3) Eric's wage rate is $10 an hour. He has no earnings other than his labor income. His utility…
A: as it is given wage rate =$10 ( an hour) utility function = U(C,R)=CR2 where c is consumption R is…
Q: If a marginal cost pricing rule is imposed on the natural monopoly shown in the figure, then the…
A: A natural monopoly is single firm in the market and has decreasing average total cost.
Q: A security that represents a debt to be paid is known as a(n) O a) bank. b) rating. O c) bond. O d)…
A: In a market, different terms are used to represent different form of market interaction between…
Q: Consider a perfectly competitive market for a good in which the market demand is D = 100 the price…
A: Firms in perfect competition make zero economic profit in the long as there are no barriers to entry…
Q: A change in the quantity of aggregate demand due to a change in the price level and a resulting…
A: In a market, any change in ove economic variable has a significant change in another economic…
Q: The inverse labour demand curve of a monopsonist employer is W = 42,500 – 118L, where Wis the annual…
A: We labour supply and labour demand function and competition is monopsnist.
Q: Question 32 Assume the economy is in short-run macro-equilibrium at E1. If the economy is allowed to…
A: The economies tend to operate with the motive of maximizing the level of their economic growth and…
Q: MC MC, VMP, S= AC W, Wa VMP N. N, Which depicts the situation of a monopsonistic firm. A minimum…
A: The correct answer is given in the second step.
Q: 1.Sadie's Cleaning Services is a perfectly competitive firm that currently cleans 20 offices an…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: Jim and TJ are Cournot duopolists. They each make an identical product. They will simultaneously…
A: Introduction Tim and Tj are Cournot duopolist. They each make identical product and have identical…
Q: The next four questions refer to the following supply and demand graphs: II II IV D, D D. 33.…
A: Since you have posted a multiple question, we will solve first question for you. In case you want…
Q: Many economists attribute the troubles of the Great Recession in housing markets to a) an increase…
A: Stock market crash, which lead to an inquiry at banks, where the sub-prime mortages problems were…
Q: Fiscal Policy refers to the idea that aggregate demand is affected by changes in Question 58…
A: Fiscal policy is a tool of government which they use to control the economy stability.
Q: Why do shortages develop under a binding price ceiling? O a) A ceiling makes the price so low that…
A: Price ceiling refers to the maximum legal price that can be charged for a good.
Q: Question 2 If the MPC is 0.80 then the MPS is Question 2 options: a) 0.30 b) 8 c)…
A: Marginal propensity to consume refers to the portion of increased income which is used for…
Q: The partial credibility premium is calculated as 706 for 400 observations with mean loss of 600. It…
A: When actuaries examine data in order to evaluate risk, they employ tools, rules, and methods known…
Q: Describe possible ethical issues about privacy as a result of business and government use of big…
A: Marr explains the use of big dàta through multiple studies. Although I want a lot of new ones màde…
Q: Q1. The following table is a demand schedule for a particular commodity, between which price range…
A: Elasticity of Demand The elasticity of demand measures a change in quantity demanded due to a…
Q: A) The figure below shows the bid rent curves for land for use in housing (R), commercial purposes…
A: 3 Bid Rent Curves are given: RR - Bid Rent Curve for land used for Housing Rc - Bid Rent Curve for…
Q: The short-run aggregate supply curve will shift to the right. The aggregate demand curve will shift…
A: Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…
Q: What is a single currency?
A: Currency is a kind of payment used to buy and sell goods and services. In a nutshell, it's money…
Q: If long-range aggregate supply (LRAS) shifts right, we know for certain that there has been a) an…
A: Long-range aggregate supply curve is vertical at full employment
Q: If the labour market is perfectly competitive, labour demand function is given by ND = a + bW and…
A:
Q: Bonds contain three important pieces of information. These three pieces are the a) issuing bank, the…
A: Bond It is an instrument that has been used by the government and companies in order to raise funds…
Q: 1. By definition, imports are people who work in foreign countries. goods in which a country has an…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Question 55 In the figure given below, we observe Price Level LRAS SRAS P1 AD Real GDP Y1 YP Oal a…
A: The curve that depicts various quantities of goods and services being demanded at various levels of…
Q: Required Q (2) if the demand function for a particular project is in the following form: Q = 75 - 5P…
A: As given Demand function is Q = 75 - 5P Price elasticity of demand = -dQdP×PQ
Q: Robinson Crusoe has a technology represented by the production function y = VL where y denotes…
A: Production function refers to the relation that shows what proportions of inputs are used and how…
Q: Consider Alexei who makes $1,400 per week and just won a 'set for life lottery ticket which involves…
A: Budget Constraint shows that the value of all the goods that a consumer consumes should be less than…
Q: Price and cost (dollars per unit) LE MC F В 40 30 20 MR 800 1,000 Quantity (units) Use the figure…
A: in monopoly market, 1) there is only single seller in the market with full control over the market…
Q: why is innovation important for the economy? how we could enrich it?
A: Innovation is the progress in ideas, technology etc which benefits the economic agents (producers,…
Q: b) will make you better off if your nominal wages fall more slowly than prices.
A: Deflation means decrease in overall average price level and inflation will be below at zero percent…
Q: You are to receive $ 400,000 exactly 5 years from now. You do not want to wait for the money and…
A:
Q: A single-price monopoly transfers economic profit to consumers consumer surplus to producers O…
A: Consumers surplus refers to the area above the price and below the demand curve. Producer surplus is…
Q: You have utility U=VC and $100. Stacy holds a gun to your head and says you must accept a gamble -…
A: Expected utility is an economic term that expresses the utility that a business or the whole…
Q: The next four questions refer to the following supply and demand graphs: III IV XIXIXIX Da D. D, 33,…
A: Thank you for the question. As per BNED, we can answer 3 subparts per session. To get the answer for…
Q: The ___________ is the Fed’s primary tool for adjusting the ___________ . a. interest on reserve…
A: The interest on reserve balances rate is an administered rate, the Fed can steer the federal funds…
Q: What is the consumer price index (CPI)? O a) The CPI is a measure of food, clothing, and housing…
A: The Consumer Price Index (CPI) is a proportion of the typical change time in the costs paid by…
Q: Current Attempt in Progress Two investments involving a virtual mold apparatus for producing dental…
A: Given information Two Conveyor Investment A: Initial investment =$56100 Operational cost=$150000…
Q: Milton Friedman, who won the Nobel Prize in economics, characterized inflation as being "high and…
A: Milton Friedman, an American economist and statistician, was awarded the Nobel Prize in Economic…
Q: Question 54 If there is a scientific discovery that eating peanuts cures…
A: Demand refers to total quantity of goods and services that is consume by consumers and they are able…
Q: When a perfectly competitive industry is taken over by a monopoly, some consumer surplus is…
A: The difference between perfectly competitive firm and the monopoly firm is the difference in their…
Q: Robinson Crusoe has a technology represented by the production function = VL where y denotes…
A:
Q: 1. If money has a time value, what do you think is the imoact of doing nothing with it (money)?\
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: A price-discriminating monopoly O is illegal cannot offer discounts sells a larger quantity than it…
A: When talking about the monopoly firm, it can be said that it has the opportunity to set the price of…
Q: Explain the impacts on the Canadian dollar and it’s exchange rate done by the increase in export of…
A: Equilibrium is the point where aggregate expenditure equals income In goods market income must…
Q: Question 7 Recall one of your or others' experiences related to the group assignment (school or…
A: 7) The graph above shows the payoff of Kim when she contributes vs when she isn't contributing. It…
Q: The Federal Reserve's Board of Governors consists of _____ members who are appointed by the _____…
A: Federal reserve is the central bank of United States.
Q: Consider the production possibilities frontier (PPF) shown in the graph below to answer the next…
A: Production possibilities frontier shows different combinations of two goods that can be produced…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The “per person” versions of production functions: Write each productionfunction given below in terms of output per person y ; Y/L and capital perperson k ; K/L. Show what these “per person” versions look like in a graphwith k on the horizontal axis and y on the vertical axis. (Assume A is somefxed positive number.)(a) Y = K 1/3L2/3 and Y = K 3/4L1/4 (on the same graph) (b) Y = K(c) Y = K + AL(d) Y = K − ALEconomics, physical capital represents the uildings or machines used by a business to produce product. The marginal product of physical capital presents the rate of change of output product with spect to physical capital (informally, if you increase e size of your factory a little, how much more Foduct can you create?). articular model tells us that the output product Y is given, a function of capital K, by Y = AKªL'-a ere A is a constant, L is units of labor (assumed to be stant), and a is a constant between 0 and 1. Determine marginal product of physical capital predicted by this del. ned with CamScannerConsider the economies of Sporon and Gobbledigook, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 20 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2015 and 2035. Sporon Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2015 11 30 1,800 2035 16 30 2,160 Gobbledigook Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2015 8 30 900 2035 13 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Gobbledigook. From 2015 to 2035, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker…
- Consider the following data on two fictional countries: 1 and 2. . Country 1 Country 2 Output per worker (y) Physical Capital per Worker, k Human Capital per Worker, h 120 100 50 100 50 25 If the production function is y = Akºh'-a, where a = 0.5., then if all differences in output were due to differences in factor accumulation then country 1 output would be %3D times greater than in Country 2 1.70 0.59 1.17 1.461. Country A and B both have the production functionY = F (K, L) = K ½L ½or Y = K0.5 L0.5 a) What is the per-worker production function, y= f (k)? Please make sure to write specificfunctional form of the per-worker production function. b) Assume that neither country experiences population growth nor technological progressand that 4 percent of capital depreciates each year. Assume further that country A saves 24percent of output each year and country B saves 16 percent of output each year. Using youranswer from part a) and the steady-state condition, find the steady-state level of capital perworker for each country. Then find the steady-state levels of income per worker for eachcountry and steady-state level of consumption per worker for each country.Consider the economies of Hermes and Gobbledigook, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 20 years, the level of physical capital per worker rises by 4 tools per worker in each economy, but the size of each labour force remains the same. first dropdown question options are (larger or smaller), second dropdown question options are (the brain drain, inward orietned growth, diminishing returns, constant returns, increasing returns), the third dropdown question oprions are (more diffucult or easier)
- Question 1 The Mankiw-Romer-Weil (1992) model. Assume the production function is given by Y = KaH³(AL)¹-a-B where a and B are constants between zero and one whose sum is also between zero and one. Physical capital is accumulated as K = SKY dk where SK is the constant share of output invested in physical capital. And human capital is accumulated just like physical capital: Н = SHY dH where SH is the constant share of output invested in human capital. The labor force grows at rate n, and the technological progress occurs at rate g. Solve the model for the path of output per worker y=Y/L along the balanced growth path as a function of SK SH, n, g, d, a and B. (Hint: Define state variables such as y/A, h/A, and k/A.)Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 10 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2016 and 2026. **THE TABLE IS ATTACHED** Initially, the number of tools per worker was higher in Hermes than in Gribinez. From 2016 to 2026, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Hermes to rise by a _________ (LARGER/SMALLER) amount than productivity in Gribinez. This illustrates the _______ (CATCH-UP/NATURAL RESOURCES/TECHNOLOGY/HUMAN CAPITAL) effect. THANK YOU FOR THE HELP1. O LounchPad • Country A and country B both have the production function Y = F(K, L) = K/³L²/3. a. Does this production function have constant returns to scale? Explain. b. What is the per-worker production function, y = f(k)? c. Assume that neither country experiences population growth or technological progress and that 20 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 30 percent of output each year. Using your answer from part (b) and the steady-state condition that investment equals depreciation, find the steady-state level of capital per work- er for each country. Then find the steady-state levels of income per worker and consumption per worker. d. Suppose that both countries start off with a capital stock per worker of 1. What are the levels of income per worker and consumption per worker?
- Suppose the per-worker production function is: y = A(1-ga) Where ga is the fraction of all workers that produce technologies. Further, suppose the growth of technology is given by the following equation growth of A = (ga/m)(L) Suppose L = 1 and m = 7, and that initially ga = 0.7. If g, fell to 0.8 the level of output per worker would: Impossible to say fall stay the same O riseShow graphically on the same x and y axis what happens to this production function if there is a technological advancement in this economy. Don,t copy from anywhere.Why Capital does not Flow from Rich to Emerging Countries? We assume that the production function in country i is 1 1 2 Yi = A ² k², (1) where y, and ki are output and capital per capita, respectively, in country i, and A is a measure of technology in country i. (a) Calculate the marginal product of capital (MPK) denoted by Ri in country i. (b) Express the MPK in terms of output per capita, yi, i.e., eliminate ki from Ri by using the production function (1). (c) We consider two countries, indexed by i 1 and i 2, whose production function is described by (1). Both are assumed to have the same level of productivity, i.e., A₁ A2. We assume y2 50y₁. Calculate the ratio R₁/R₂. (d) We keep assuming that y2 50y1, but now we assume that A2 educational attainment is higher in country 2. Calculate the ratio R₁/R₂ under 10A₁ because these assumptions. FX = - (e) We keep assuming y2 50y₁ but now we consider that technology in country 1 is a function of technology of the more advanced country 2,…