According to the neo-classical theory of distribution, factors of production earn their respective marginal products. Using labor as an example, explain why this makes sense.
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- Evaluate the statement “a model with total-factor augmenting technological progress is identical to a model with labor augmenting technological progress.”This model states that output depends on the economy’s initial endowment of capital and labor. Y = f (K,L)a. Harrod-Domar Modelb. Rostow’s Stages of Growth Modelc. Solow Modeld. Power-Balance ModelWhat is the ans for PURE specific and the ans for MIXED specific. Pls give explanations for the differences between these two models. (p/s this is the 3rd time I'm asking this question bcos your team did not answer my question of Pure AND Mixed but just specific factors model in general) PLEASE HELP ME THANKSSSS In the Pure Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then... In the Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then... A. Both owners of K and owners of A will benefit. B. Owners of A will benefit. C. Owners of K will benefit. D. Neither owners of K nor owners of A will benefit.
- Assembly: Total cost of production = PAQA = 400Earnings of High-Skilled Labor = WHHA = 100Earnings of Low-Skilled Labor = WLLA = 200Earnings of Capital = RKA = 100R&D: Total cost of production = PRQR = 400Earnings of High-Skilled Labor = WHHR = 175Earnings of Low-Skilled Labor = WLLR = 125Earnings of Capital = RKR = 100A. In which factor(s) is assembly intensive? In which factor(s) is R&D intensive?B. Suppose that due to the opening of trade, the price of assembly falls by ∆PA/PA = −20%, the price of R&D remains unchanged, ∆PR/PR = 0%, and capital’s share earnings remains constant.C. What has happened to the relative wage of high-skilled/low-skilled labor? Does this match the predictions of the offshoring model?Can you describe the limitations of classical economics in terms of enhancing economic conditions?How will you explain the 6 basic assumptions of the traditional neoclassical trade model, must be scrutinized?
- D2) Economics In the R program, with what code is the vector outoregressive model found? (for daily return)Which of the below statements DOES NOT capture what Charles Wheelan has expressed in chapter 6 Productivity and Human Capital of Naked Economics? A) Even the most prosperous economy will contiue to require certain manual tasks that do not require advanced college degrees. These tasks cannot be replaced with automation. Expecting Ph.D.s or people with professional education to do such tasks will have a high opportunity cost. B) Economics tells us that there is no theoretical limit to how well we can live or how widely our wealth can spread. C) The economic prosperity of an economy requires that every person in that economy have a Ph.D. degree. D) Wheelan argues that the free market system does not make poverty inevitable. Economic development is not a zero-sum game.The Black Death: (a) Wages were higher after the Black Death because of diminishing returns. Our production model exhibits diminishing returns to labor: each additional unit of labor increases output by less and less. So if the amount of labor is reduced, the marginal product of labor — and hence the wage — increases. The reason is that capital stays the same: each remaining worker is able to work with more machines, so his productivity rises. In fourteenth-century Europe, the marginal workers could move to better land and discard old broken-down tools. Graphically, this can be seen by considering the supply-and-demand diagram for labor in Figure 4.2(b). If the supply of labor shifts back (because a large number of workers die), the equilibrium wage rate increases. Draw this graph — including the shift in the labor supply curve — to see the result for yourself. Mathematically, the result can be seen in the solution for the wage rate in our production model,…
- Please make sure the answer is correct 100% Why does cost of capital play an important role in decision-making?Why isn’t money considered capital in economics? Which of the following are microeconomic issues? Which are macroeconomic issues? a. How will an increase in the price of Coca-Cola affect the quantity of Pepsi Cola sold? b. What will cause the nation’s inflation rate to fall c. How does a quota on textile imports affect the textile industry? d. Does a large federal budget deficit reduce the rate of unemployment in the economy? Explain the importance of the ceteris paribus assumption for an economic model. Analyze the positive versus normative arguments in the following case. What statements of positive economics are used to support the requiring of airbags? What normative reasoning is used? Should the Government Require Air Bags? Technological advances continuously provide new high-tech options to save lives that add to the price of cars, such as cameras, radar, and airbags. Airbag advocates say airbags will save lives, and the government should require them in all cars.…Outline the basic assumptions of McGregor’s Theory X and Theory Y. Hofstede has pointedout that discussion about McGregor’s Theory X and Theory Y is based on observations inWestern societies – which are different in many ways from the new economic powers inthe East. What is your opinion?
