Answered: If two economies are identical, except…

If two economies are identical, except the savings rate in one economy is higher, explain why we might expect the economy with the higher savings rate to grow faster and in that sense be health

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section: Chapter Questions

Problem 13QP

See similar textbooks

Related questions

Q: In the circular flow model, firms own the economic resources and households buy the manufactured…

A: Firms and household are the two players in the circular flow model.

Q: Draw a simple circular flow diagram (without government) and use the relationships shown in the…

A: In the two-sector circular flow of income model, there are two sectors- the households and the…

Q: Please provide an example showing the use of Econometrics for a specific economic concern.

A: Concept: Econometrics is very much the quantitative implementation of mathematical and statistical…

Q: Suppose that virtually everyone in the United States decides to take life a little easier, and the…

A: Below is the given information: The fall in average workweek = 25%

Q: Explain how our standard of living depends upon our level of real GDP per person but there might not…

Q: Peter has just graduated from high school. He will live for three more periods and is considering…

A: Present value: The present value of a sum of money, as opposed to the future worth which will have…

Q: Make sure to show your work to get credit. 1. Assume: Yd = $194,000 b = .90 a = $…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Explain Say’s Law and walras law in Microecnomics? Please describe with graph or with one example…

A: According to say's law focus point of economy should be the supply side because demand arises out of…

Q: If the U.S. spent less on medical care and instead invested the savings in the population's health…

A: If the US spent less on medical care instead of investing the savings in diet , exercise, education…

Q: Large majorities in the 11 emerging and developing countries surveyed either own or share a mobile…

A: The income effect refers change real income or purchasing power of consumers due to the change in…

Q: What is your opinion on the idea that a persons income and wealth in American society today is…

A: The economic performance of the country would be determined by the national income or the output.…

Q: Every citizen should take basic economics is an example of a positive statement true or false

A: Positive Statements are those which can be tested and proved. Normative statements are those which…

Q: There is evidence that income per worker is converging in A) the richest countries and the poorest…

A: The measure of the amount of income that is being earned per person in a geographic region or nation…

Q: In the future, “you will own nothing and you will be happy.”Jack is a lowly office worker in 2030…

A: A consumer price index (CPI) is a price index that measures the cost of a weighted average market…

Q: Using the Circular flow of money and goods, discuss how decisions in a household affected the…

A: Business impedances and terminations from social-isolating measures. To evaluate the monetary impact…

Q: s a family decision about how much income to save a microeconomics or macroeconomics topics

A: In economics, we study how scarce resources are used by decision-makers to satisfy the unlimited…

Q: ________ is a fundamental aspect of economic system in which individuals, rather than the state,…

A: Economic freedom or liberty is a fundamental aspect of an economic system in which individuals,…

Q: ) If a nation in which the volume of goods and services is growing by 5 percent per year and its if…

A: Gdp states that production or volume of goods and services in a economy . We can ans following as…

Q: What determines whether a good is “capital” or a “consumer good”? How it is purchased: with…

A: Capital merchandise square measure merchandise that square measure utilized by one company to help…

Q: HIV/AIDS has an impact on all the following areas EXCEPT: a.Household consumption b.Productivity…

A: HIV/AIDS kills and incapacitates grown-ups in the most useful piece of their lives. Subsequently, it…

Q: As technological change makes us more sedentary and food costs increase, obesity is likely. What…

A: An increase in the cost of food and makes individuals more sedentary is one of the major drawbacks…

Q: If the budget line rotates from blue to red. Consumption Next Year B Consumption Today The interest…

A: since you have asked multiple questions and according to policy we can solve only 1 question and for…

Q: world is gradually turning into a cashless world. To what extent will a cashless lifestyle…

A: Yes. Many of the economies are turning towards digital cash. This solves majority of the problems…

Q: Assuming that the substitution effect is large relative to the income effect, tax reform designed to…

A: Substitution effect: It states that if there is an increase in the price of a good then consumers…

Q: Why is microfinancing an unsuitable concept, according to some critics?

A: Microfinance was first launched in the 1970s as a means of assisting individuals in lifting…

Q: Question According to Stiglitz "it is better to be a cow in Europe than to be an average person in…

A: The income inequalities are rising rapidly across the world. The developing countries are far behind…

Q: Discuss the importance of services to the economy

A: Economy is the inter connection of different economic activities such as production, planning,…

Q: Nancy returns to school to study medicine. After graduating during an economic boom, she spends six…

A: There are various types of Unemployment : Frictional Unemployment Structural unemployment Cyclical…

Q: What are the relationships between health and education, on the one hand, and productivity and…

A: The basic goals of development are education and health. Both are necessary for improving human life…

Q: Does owning new clothes, shoes and the latest electronics mean that someone is rich? Explain.

A: We are going to discuss the scope and approach to test hypothesis mentioned in the question.

Q: what type of economy do people work for about to hours then spend the rest of their time drinking…

A: The only kind of economy where working for a few and relaxing for longer hours is possible is a…

Q: What will a technological advancement do? A. shift the demand curve to the left B. shift the…

A: The thing which helps society and tends to determine the way in which there is the interaction of…

Q: Q1. What is the difference between Straight line PPF and bowed outward PPF

A: A straight line ppf is a ppf where the opportunity cost is constant. Slooe of a opf curve shows the…

Q: luxury is a non-essential enjoyment. Food, housing, and water are essential for most humans. Many…

A: *Answer:

Q: USA Today noted that the destruction caused by three 2004 hurricanes, combined with the already high…

A: A demand curve is a graphic representation of the connection between the customer demand for a good…

Q: Explain this, Instead of utilizing humans to produce wealth, we have to utilize wealth to produce…

A: Human capability refers to the set of various functioning skills that an individual possesses in…

Q: According to World Bank (2012), in Ethiopia, the poorest 20 percent of population received 9.3…

A: Answer: Given, Data of Ethiopia: Share of poorest 20% in income = 9.3% Share of richest 20% in…

Q: Explain three basic sources of deviations from PPP

A: {"Purchasing power parity"} PPP is a theory that depicts ER (exchange rates) between currencies of…

Q: How does health, wealth, and happiness of an economy might tie into the business world or be…

A: Government may be of certain types. In democratic government, it is found that there is both public…

Q: What elements of happiness do wealth and productivity miss? What elements of happiness do they…

A: Self survival, well-being, good governance etc. are the components of satisfaction that wealth and…

Q: What is the relationship between the rising cost of living and low-income communities’ standard of…

A: The cost of living is the average amount of money that people in a certain location require in order…

Q: The single biggest item state and local spending is spent on is its only one option a.…

A: According to the government budget survey, the state and local government expenditure fall under the…

Question

If two economies are identical, except the savings rate in one economy is higher, explain why we might expect the economy with the higher savings rate to grow faster and in that sense be healthier.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

When one person saves more, that person’s wealth is increased, meaning that he or she can consume more in the future. But when everyone saves more, everyone’s income falls, meaning that everyone must consume less today. Explain this seeming contradiction.
A service-based economy is less likely to be a source of prosperity than a goods-based economy. true or false?
Economic theory suggests that we can increase productivity by
Discuss A Self-Sufficient Economy
Suppose that, in an imaginary country, the last decade witnessed a flow of employment from coal mining to automotive industry. Explain why would this change most possibly create positive affects on real GDP per capita?
Go to a recent issue of The Economist magazine. In the back of each issue is a section called “economic indicators.” That section lists the most recent growth data for a substantial number of countries. Which countries around the world are growing most rapidly according to the most recent data? Which countries around the world are growing more slowly? Flip through the stories in The Economist to see if there is any explanation for the pattern that you observe. Write a brief essay on current general economic conditions around the world.
Why is GDP per capita is not the same as Economic well-being?
A luxury is a non-essential enjoyment. Food, housing, and water are essential for most humans. Many Americans would install electricity and indoor plumbing. Many people now consider Internet connection essential. Is it a necessity? What about folks without Internet access or who don't utilize it? How may the requirement of Internet connectivity effect e-commerce growth?
What is meant by economics
Why would you expect an inverse relationship between self-sufficiency and real GDP per capita?
What does our book argue about leisure and GDP? Choice 1 of 4:If we worked like in the past, GDP would be larger, but leisure would be less .Choice 2 of 4:If we worked like in the past, GDP would be less, and leisure would be less .Choice 3 of 4:If we worked like in the past, GDP would be less, but leisure would be larger. Choice 4 of 4:If we worked like in the past, GDP would be larger, and leisure would be larger. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy. Give an example to help support your answer.