Which factors explain the difference in per capita GDP between two countries according to the Cobb-Douglas production model? Which factor is most important when explaining the difference in per capita GDP between two countries?
Q: What is the main takeaway implication of the Malthusian growth model? In particular, what policy…
A: In the 19th Century, an English Economist Reverend Thomas Malthus published "An Essay on the…
Q: List and discuss the two (2) main factors of economic growth according to the production possibility…
A: Production frontier refers possible combinations of two goods that can be produced with the given…
Q: In the endogenous growth model, productivity growth is the result of population growth. saving…
A: The answer is - Option 4. Human capital accumulation.
Q: In “Why and When Did the West Get Rich?” Maddison argues that the emergence of urban trading centers…
A: When a nation/society as a whole goes through some major changes, it can also happen with changes in…
Q: What happens in the steady state to the capital-labor ratio, output per worker, and consumption per…
A: What is steady state - A balanced structure between population growth and productivity and use of…
Q: Use your own words to reflect the three reasons for the productivity slowdown in OECD countries?…
A: The OECD has written extensively on the issue of productivity growth, stating that productivity is…
Q: International data show a positive correlation between political stability and economic growth.…
A: Political instability refers to the uncertainty that is associated with government collapse due to…
Q: Will free trade and perfect competition lead to an equalization of wage rate across countries?…
A: According to price equalization theory, or the Heckscher-Ohlin Samuelson theory, due to the free…
Q: Compare and contrast the different economic systems: Free Market; Command & Control; Hybrid. - The…
A: Economic System refers to the system of production, resource allocation, & distribution of…
Q: Neocolonial Dependence Model, the False Paradigm Model and the Dualistic Development,
A: Neo-colonial Dependence Model: It shows that the economies which are less developed economically…
Q: In the endogenous growth model, suppose that the efficiency with which human capital is accumulated…
A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…
Q: write about Arthur Lewis's dual-sector model of development, and how this model sheds light on the…
A: Quantity of enterprise depends on certain factors that are important for enterprise. It would…
Q: In the two-sector Lewis model, Lewis makes several assumptions. What does he assume about the…
A: The two sector model given by Arthur Lewis is frequently referred to as Lewis model. This model…
Q: What is the effect of an increase in total factor productivity on steady state population and…
A: A Malthusian growth model, sometimes called a simple exponential growth model, is essentially…
Q: EUROPEAN ECONOMIC DEVELOPMENT - Which are the three features of the “Impossibility Trinity…
A: The policy trilemma, sometimes known as the "impossible trinity," is a set of trade-offs that a…
Q: Financial development, social capital, favourable business regulation, trade openness are different…
A: Social capability: This is the capability that regulates the empathy, emotions, and the…
Q: Explain all three Circular flow economic models in one structure. ?
A: An economic model is a simplified depiction of reality that enables economic action to be observed,…
Q: Consider an economy with a large agricultural sector. A long period of drought hits the country.…
A: Capital can be occupationally mobile if it can be used for more than one purpose. For example…
Q: Is economic development a branch of economics? Yes or no? Explain your answer.
A: The process of creation of wealth for the benefit of a society is known as economic development.…
Q: What happens in the steady state to the capital-labor ratio, output per worker, and consumption per…
A: The productivity falls, it means now less capital will be available per workers. The low capital…
Q: After reading Hickel's article on the concept of de-development, answer the following questions in…
A: Answer in Step 2
Q: List and discuss the two (2) main factors of economic growth according to the production possibility…
A: The production possibility curve shows the potential level of output that can be obtained is…
Q: In the long run, the most important factor shifting the AS curve is ___________. a. productivity…
A: The total supply of goods and services that firms in a national economy plan to sell during a…
Q: Explain the topic Theory of socio-economic development by Joseph Schumpeter
A: The socio-economic factors are the employment, income, gross domestic product, literacy rate and…
Q: Briefly summarizing both linear stage models and structural transformation models. What can you say…
A: Economic development is the very important goal of any country. In most of the cases, rich country…
Q: Why is a strictly economic definition of development inadequate? What do you understand economic…
A: The Economic Growth says that the more the actual GDP is production or more. Economic growth is…
Q: Which of the following is NOT a reason that people and firms can increase productivity by focusing…
A: Focusing on a few priorities firm will be able to see the results faster. Firms increase…
Q: Why perfect competition is not assumed in the endogenous growth model? Explain.
A: Perfect Competition is a form of market where there is free entry and exit and the firms are price…
Q: How does each variable in the production function reflect economic prosperity for a nation?
A: Answer in step 2
Q: Economists in the Ministry of Finance proposed the following startegies to increase the country's…
A: In an economy, production possibility of a country can be increased when there is an increase in the…
Q: Which of the following statements represents the best approach to economic development for Less…
A: In the international market, less developed countries are the one that are experiencing a phase of…
Q: What is the "endogenous growth model"?
A: Endogenous growth model implies that economic growth is primarily based on internal forces ( within…
Q: What is PURA Model Development?
A: PURA stands for Providing Urban Amenities in Rural Areas.
Q: Poor Economics by Banerjee, Abhijit V. Question: Briefly explain the “institutionalist view” of…
A: There are various economic schools that belong to different ideologies to analyze the economy and to…
Q: We have an innovation-based Schumpeterian model in which productivity and aggregate output growth…
A: The model by Schumpeter deems the growth and advancement in technology as the force behind the…
Q: Why must we change our paradigm of growth and consumption to that of de-development? Elaborate your…
A: In the real-world, courtiers follow a paradigm of growth according to which the more the country…
Q: Describe the Lewis Theory of Economic Development comprehensively?
A: ED {Economic development} is a comprehensive concept and it implies progressive changes in the…
Q: Financial development, social capital, favourable business regulation, trade openness are different…
A: The countries around the world work with the motive of enhancing their economic, and financial well…
Q: Give the point of view of Marx and Engels on economic development. Explain the pros and cons.
A: Capitalism refers to a market system in which capital is owned by private producers.
Q: In 2000 GDP per capita was 14.2, capital/output was 3.5, human capital
A: ANSWER STEP-1 SOLUTION:- According to the given data we have cobb- Douglas production function is in…
Step by step
Solved in 2 steps
- The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. During 1960-2010, which countries failed to reduce the gap betweentheir GDP per capita and the U.S. GDP per capita?The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. During 1960-2010, which countries were able to reduce the gap betweentheir GDP per capita and the U.S. GDP per capita?Between 1970 and 2005, China’s GDP per capita grew at an average rate of 7.3% per year while GDP per capita in the US grew at an average rate of 2.2%. In 2005, US GDP per capita was $36,806 and Chinese GDP per capita was $5,955. Assuming that the two countries continue to grow at these rates, in what year will China overtake the US in terms of GDP per capita?
- The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. Why have some countries reduced the gap between their incomes andthat of the United States and other countries failed to do so?What are the components of economic growth? How does PPF is used to depict the economic growth of a country?what are 2 main factors of economic growth according to the PPF
- explain how economic growth is measured and with the aid of a diagram, discuss how a PPF may be used to illustrate the economic growth of a countryIn 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million. In 2000, Denmark had 3 GDP of 160 billion (measured in U.S. dollars} and a population of 5.3 million. By what percentage did Denmarks GDP per capita rise between 1980 and 2000?According to Figure 15.4, by what percentage did GDP per capita increase between 1820 and 1995 in North America? Latin America? Africa?
- Which of the following two countries A and B ceteris paribus do you expect to have the higher steady-state level of GDP per capita? Moreover, which country do you expect to grow faster? For this, you may assume that both countries will initially start their growth paths below their corresponding steady states. a) The two countries have initially the same levels of GDP per capita but country A has a higher savings rate . b) The two countries have initially the same levels of GDP per capita but population in country A grows at a rate of 10% while in country B population grows at a rate of 8%. c) The two countries have initially the same levels of GDP per capita but the average educational attainment of workers in country A is about 1.2 times higher than in country B.Why must we change our paradigm of growth and consumption to that of de-development? Elaborate your answer.Some resource-rich countries have succeeded in converting resource wealth into longterm and equitable economic development, while many others have not. Naturalresources have played a fundamental role in the growth of several industrializedeconomies, including Germany and the United Kingdom, where coal and iron ore depositswere a precondition for the Industrial Revolution. The United States was the world’sleading mineral economy from the mid-nineteenth to the mid-twentieth century and in thesame period became the world’s leader in manufacturing (van der Ploeg 2011). Morerecently, countries such as Botswana, Chile, and Norway have used abundant oil andmineral resources as the foundation for economic growth. However, in many othercountries, resource extraction appears to have undermined governance, fed corruptionand capital flight, and increased inequality.Required:(a) Discuss the main challenges posed by resource revenues; and(b) Discuss the special fiscal institutions and mechanisms…
