Everything is identical in the countries of Qumar and Rohan except that Qumar has a smaller quantity of capital than the Rohan, Both countries increase their capital by the same amount Which country experiences the greater increase in production? O A. The two countries experience similar increases in production. O B. Qumar has the greater increase in production. O C. Rohan has the greater increase in production. O D. There is not enough information given to answer this question.
Q: In a given year, an estimated 7.8 million Mexican-born immigrants were employed in the United…
A: a) Total Mexican-born immigrants were employed in the United States=7.8 millionNow,70% mexican-born…
Q: The catch up effect means that countries that start off rich tend to grow more rapidly than…
A: Catch up effect states that a poor country that has low initial growth rate but higher productivity…
Q: An economy is characterized by low money and capital market interest rates, and low price and wage…
A: The term "economic cycle" refers to the economy's fluctuation between expansion (growth) and…
Q: Say that the average worker in Argentina has a productivity of $15 per hour while the average worker…
A: Productivity is the effectiveness of the creation of labor and products communicated by some action.…
Q: Which of the following is true of economic expansions? O Governments can correctly predict the…
A: The answer is - since WWII, developed countries have been expanding in most of the years.
Q: The hockey stick of growth shows us O That environmental damage has increased dramatically in the…
A: Hockey stick of growth is pattern which shows the linear growth in initial phases and after some…
Q: Does the Law of Increasing Opportunity Costs hold for France? Explain why or why not. B) If…
A: Opportunity cost defines the cost of next best alternative or the amount one has to given up to…
Q: (a) Suppose that both Ghana and Nigeria have the following production function Y = f(K,L) = K©5L05…
A: A. (ii) Steady state, Investment = Depreciation s * f(k) = δ K Ghana saves 10 % And δ = 0.05 0.1…
Q: Say that the average worker in Canada has productivity of $21 per hour while the average worker in…
A:
Q: Assume that each $1 billion in investment in capital goods generates 0.4 percentage point of the…
A: Real GDP is a macroeconomic statistic that measures the value of the goods and services produced by…
Q: 4. The catch-up effect Consider the economies of Hermes and Gribinez, both of which produce gaggles…
A: Productivity in the following tables can be found out by dividing output by the number of workers.
Q: Countries A and B are developing countries. The stock of Human capital (H) in country A is greater…
A: Ohlin states that trade results on account of the different relative prices of different goods in…
Q: or a country like Oman how can the Gross capital formation be increased? elect one: O a. None of…
A: GROSS CAPITAL FORMATION: Capital formation is a term that describes the total capital collection…
Q: Assume that a country's production function is Y= AKº³Lº7. The ratio of capital to output is 3, the…
A: a. The general production function is given below. The given production function is given below…
Q: c. Suppose that public policy alters the saving rate so that the economy reaches the Golden Rule…
A: Note - Since you have posted multiple independent questions in the same request, we will solve the…
Q: Consider the economies of Blahnik and Tralfamadore, both of which produce gaggles of gop using only…
A: 2023 Blahnik productivity can be calculated as follows: Blahnik2023=OutputLabor force=5,00050=100…
Q: Economic growth may be described as? Select one: O a. An increase in money available to the economy…
A: GDP , also called Gross domestic product, is a standard method used in estimating the level of…
Q: Institutions are important to a country's prosperity because institutions affect Select one: O a the…
A: An institution is an established organization to monitor the working of the country, to monitor how…
Q: 4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce gobs…
A: Productivity = OutputLabor Force
Q: What happens in the long run for a country that increases its saving rate? O Productivity increases…
A: A greater saving rate leads to a higher steady-state capital stock and production level. The…
Q: President Kwame Nkrumah of Ghana had the Akesombo Dam built on the Volta River. It was expected that…
A: Countries can overcome this stagnation and continue to grow by inventing new technology, according…
Q: Jtilizing the aggregate production functions to the right, Robert Solow asserted that the most…
A: We are going to discuss the inevitable contribution of technological change into the economic…
Q: A “miraculous" Asian economy has an aggregate wage bill of 300 billion dollars and an aggregate GDP…
A: The Cobb-Douglas production function is a form of production function that represents the…
Q: A country faces diminishing marginal returns when increasing it's capital stock. If this country…
A: Diminishing marginal returns is defined as the decrease in production with the addition of more and…
Q: The value of what Burger King produces in France is included in the United States and in the French.…
A: The value of Burger King produces in France would be included in the French GDP because it is…
Q: What is the opportunity cost of economic growth? O A. Land. B. Both capital goods and land. OC.…
A: Opportunity Cost is the cost of producing NEXT BEST ALTERNATIVE. For EXAMPLE - Say a person is…
Q: Which of the following statements about the opportunity cost of economic growth is correct? The…
A: The opportunity cost of economic growth is the consumption that's being given up today to have more…
Q: Which of the following statements is (are) problems associated with economic growth? O a. Growth of…
A: GDP(GROSS domestic product) is the sum of value of goods and services that are produced in an…
Q: Assume a country increases the production of capital goods (& decreases consumer goods). This will:…
A: An economy generally produces teo types of goods that are capital goods and consumer goods. Capital…
Q: Which of the following is not a determinant of economic growth? O a. Growth in physical capital. O…
A: Economic growth is defined as the process whereby the final goods and services increase in the…
Q: If Y is labor intensive then, according to HO theorem, this country is abundant capital O labor both…
A: The H-O theorem states that a country will export that good that is intensive in the country's…
Q: Which of the following is correct? O Nominal GDP uses the price level from the benchmark year to…
A: GDP: The Economic growth of a country is measured in GDP terms where GDP is the measurement of the…
Q: rate that is and an annual growth rate in real GDP that averages. Select one: O a. less than 10 % ;…
A: The unemployment rate would be close to the natural of unemployment when economy operates at the…
Q: a) Consider an economy in which the labour force grows by 2.7 percent per annum, while the capital…
A: Given: Growth of labor force=2.7% Growth of capital=4% Share of labor=55% Share of income=45% Note:…
Q: Everything is identical in the countries of Qumar and Rohan except that Qumar has a smaller quantity…
A: Rohan has greater increase in production due to higher capital.
Q: ) Knowing that at the autarky equilibrium (Px/Py), = Y4 and (Px/Pa) =4, and that commodity X is more…
A: The production possibility frontier is a curve that illustrates the combination of two goods that…
Q: xplain why U.S. potential GDP per worker per week is greater than that in Europe. Vhat could induce…
A: Reason for more potential GDP per worker:The potential GDP per worker in US is more than the Europe.…
Q: The nation's growth rate is, increases by 0.7 percent, government purchases increase by 1.4 percent,…
A: Real Economic Growth Rate is the rate at which a country's Gross Domestic Product (GDP)…
Q: What kind of Financial Policy was successful in several Asian countries in promoting economic…
A: 1. An rise in the production of products and services in an economy is referred to as economic…
Q: Suppose that there are diminishing returns to capital. Suppose also that two countries are the same…
A: Given that:- There are diminishing returns to capital and saving rate rises from 5% to 7% in long…
Q: 4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce…
A: "The catch-up effect in development economics indicates convergence i.e. over time poorer nations…
Q: An increase in the production of capital goods and a reduction in the production of consumer goods…
A: The economic growth is the increase in the value of all goods and services produced in a given year.…
Q: Q2. d) Suppose the economy is initially in a steady state. What happens to the level of output per…
A: An economy with a higher rate of population growth will have lower steady-state levels of output per…
Q: The relationship between international aid and economic growth for less-developed countries is O a)…
A: International aid refers to the practice of foreign countries extending a hand of help in the for of…
Q: Consider two Solow economies (A and B), exactly identical except that economy A has a higher share…
A: This is a model of exogenous economic growth. It studies how changes in population growth, savings…
Q: O a. If Country C's GDP per capita rises from $2,500 to 7,500, and Country D's GDP per capita rises…
A: These Options are WRONG B) When the every 50 years country's GDP getting double, that means if the…
Q: If country A produces 6,000 units of goods and services using 600 hours of labor, and country B…
A: Productivity is used to measure how efficiently an input is in production of a good. It is…
Q: How can the study of macroeconomics help a country's economic managers? O a. All of these are…
A: Macroeconomics is the study of a country's aggregates.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that there are two countries; Country 1 and Country 2. Country 1 is capital abundant and country 2 is labor abundant. X is capital intensive and Y is labor intensive. Assume that Country 1 is a large country and country 2 is a small country. Answer the following question: Now, suppose that Country 2’s labor supply increases. Show the pregrowth and after growth production and consumption points on a figure. Clearly explain how the production and consumption of commodity X and Y would change after growth if we assume that both X and Y are normal goods.If in 2008 China’s real GDP is growing at 9 percent a year, its population is growing at 1 percent a year, and these growth rates continue, in what year will China’s real GDP per person be twice what it is in 2008 Please use the other formula to solve this proble not the rule of 70, because i have the solution using rule 70!Suppose that India is currently growing at a rate of 14% per year and is producing real GDP per capita equal to $7,000, whereas the United States is currently growing at a rate of 5% per year and is producing real GDP per capita equal to $28,000.a) How long will it take India to double its real GDP per capita?b) How long will it take the United States to double its real GDP per capita?c) How much will India's real GDP per capita be in 20 years?d) How much will the USA's real GDP per capita be in 14 years?
- Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has more physical capital per worker and so it has more real GDP per worker than the other. Finally, suppose that the saving rate in both countries increases from 5 percent to 7 percent. In the long run we would expect that a. the growth rate will not change in either country. b. the country that started with less physical capital per worker will grow faster. c. the country that started with more physical capital per worker will grow faster. d. both countries will grow and at the same rate.Computing growth rates (II): Suppose k, l, and m grow at constant rates givenby g k, gl , and gm. What is the growth rate of y in each of the following cases?(a) y = k 1/3(b) y = k 1/3l 2/3(c) y = mk 1/3l 2/3(d) y = mk 1/4l 3/4(e) y = mk 3/4l 1/4(f ) y = 1klm2 1/2(g) y = 1kl2 1/4 11/m2 3/4Country A and B each have a production function Y = A ̄K1/2L1/2. Assume A ̄ = 1, d ̄ = 0.05, and L ̄ = 100 in each country but investment rate differs, s ̄A = 0.1 in country A and s ̄B = 0.2 in country B. Each country starts off with an initial K of 200. (a) What happens to capital and output in each country in the long run? (b) Does country B overtake country A? (c) Suppose an earthquake hits country A so its initial K (instead of being 2) is now reduced to 1. There is no effect on country B. How does the long run output compare with your answer in (a).
- The capital accumulation theory of economic growth that economies attain growth through saving invested in increasing the capital resources in the economy fails to take account of which of the following factors? a) For capital accumulation to produce economic growth it has to be the right type of capital that can be applied to the production of goods desired by society. b) The capital created has to be efficient. Savings may be squandered by producing capital goods that consume a lot of resources to produce, produce poor quality goods, or are wasteful of other resources. c) For capital to be productive there must be appropriate infrastructure including transportation and communication systems, banking and legal systems, as well as requisite natural resources and often appropriately skilled labor. d) Societies may still squander the wealth created by capital accumulation and in the long-run limit the growth of the economy. e) All of the aboveSuppose that two countries are exactly alike in every respect except that the citizens of countryA have a higher saving rate than the citizens of country B.a. Which country will have the higher level of output per worker in the steady state? Illustrategraphically.b. Which country will have the faster rate of growth of output per worker in the steady state?Suppose that total capital and labour both increase by the Suppose that total capital and labour both increase by the same percentage amount so that the amount of capital per worker k does not change. Writing the production function in per-worker terms, y = f(k), requires that this increase in capital and labour must not change the amount of output produced per worker y. Use the growth accounting equation to show that equal percentage increases in capital and labour will leave output per worker unaffected only if aK + aN = 1. Suppose that total capital and labour both increase by the
- Which of the following statements are correct? state which ones are definitely incorrect and why. a. Capital grows when investment is higher than depreciation b. The growth rate of capital increases when investment is higher than depreciation c. For a given rate of depreciation of capital, a rise in the ratio of investment to capital will raise the growth rate of capital d. There are no rich countries wth low investment ratios, and no poor countries with high investment ratios e. A country can only invest more than it saves if it borrows from abroad. f. The scatter diagram of capital output ratios vs investment rates does not show a perfect correlation. Therefore there is something wrong with the model of the way capital grows g. A country that increases its saving rate will be able to have more rapid growth of capital for as long as it maintains this higher savig rate h. A country that increases its saving rate will be able to have more rapid…Country A and country B both have the production function Y = F(K, L) = K1/3L2/3 Does this production function have constant returns to scale? Explain. Find Solow’s production function, y = f (k)? 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. Find the steady-state level of capital per worker for each country, then find the steady-state levels of income per worker and consumption per worker. Suppose that both countries start off with a capital stock per worker of 2. What are the levels of income per worker and consumption per worker? Remembering that the change in the capital stock is investment less depreciation, use a calculator (or, better yet, a computer spreadsheet) to show how the capital stock per worker will evolve over time in both countries. For…Question Approximately how long will it take Ethiopia to double its real GDF per person of S100 if its growth rate of real GDP per person is 0.9 63 years 77.7 years 70 years 109 years 100 years If Country A's real GDP grows at a rate of 14 percent per year, how many years will it take for Country A's real GDP to double? 10 7 5 30 14 Labor productivity is defined as total real GDP. real GDP per person. total output multiplied by total hours of labor. real GDP per hour of labor. hours of work per person. An increase in labor productivity increases the standard of living. decreases the standard of living. might be the result of an increase in the quantity of labor. generally occurs when physical capital decreases because firms must then hire more workers. cannot occur without a corresponding increase in employment. Last year, in a nation far to the South, real GDP was $90 million 900.000 workers were employed. This year real GDP is $100 million. 950.000 workers are…