n the Spesific Factors Model, assume that in Country A, "wheat" is produced by using land and labor, "leather" is produced by using capital and labor. Labor is defined as a ................................ ( mobile/ specific/ fixed) factor.
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In the Spesific Factors Model, assume that in Country A, "wheat" is produced by using land and labor, "leather" is produced by using capital and labor.
Labor is defined as a ................................ ( mobile/ specific/ fixed) factor.
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- Consider the simple model to estimate the effect of technology investment on labor productivity of M enterprises: product = Bo + B1 ln K + B2 ln L + B3 tech + B3 size + u In which, product is the labor productivity; tech is the total technology investment value/total investment value; ln K is the natural logarithm of total capital; ln L is the logarithm of total labor; tech is total techonology investment value/total investment value; size is the size of the enterprise, the dummy variable includes four categories: 1-super small; 2-small; 3-medium; 4-large (size_1 is the base category).a. What is the endogenous problem in the regression model? b. In the model, can the variable tech be correlated with u? Explain?c. What causes endogenous problems in this case?d. Could you give some solutions to the endogenous variable problem?Consider the production productivity matrix of two goods from the US and India: United States of America India Labor force 200 800 Labor per unit corn 8 50 Labor per unit automobile 10 40 4. How many units of automobiles will the US produce should it exhaust half of its labor force to produce automobiles? Group of answer choices 20 10 25 Not enough data 5. How many units of automobiles will India produce should it exhaust all its labor force to produce automobiles? Group of answer choices 20 16 25 12Question 2 Why is education and training rarely provided by firms? What government policies would encourage this provision? Use a model of endogenous growth to explain how encouraging more private investment in education would lead to increased growth rates. Assuming that private agents place less value on future consumption than current consumption, would ever higher growth rates be desirable? Outline the setup of (but do not attempt to solve) an endogenous growth model that incorporates both leisure and consumption in the utility function.
- In the circular-flow diagram, which of the following represents a factor market transaction? A) purchase of a new t.v. B) Expenditure on a new pair of pants. C) Payment for a haircut. D) Payment for raw materieals in the production of bikes.Consider now the two-period model in general equilibrium, so that prices, investment and labour supply are endogenous, i.e. the production economy. Analyse and carefully explain graphically and in words the general equilibrium effects of a decrease in TFP(total factor production) for a benchmark economy with no frictions.Reproduce the diagram for the Robinson Crusoe economy for a firm that has constant returns to scale. Under what conditions will it be ancient for the firm not to produce? What is the consumption level of the consumer in such a case? Provide an interpretation of this possibility.
- Which of the following are stock variables? Which are flow variables? A. capital B.per-capital GDP C. deprecation D.investmentSuppose there is a simple hypothetical economy in which the only industry is cloud computing. In the cloud computing field, productivity—the amount of goods and services a worker can produce per hour—is measured by the number of lines of code one programmer authors per hour.An example of a flow variable is a. capital. b. consumption expenditure by households. c. the machinery owned by a firm. d. the cash held by households.
- The gravity model is frequently used to explain why two countries do not trade. Give examples and causes for this abnormality.Consider the production productivity matrix of two goods from the US and India: United States of America India Labor force 200 800 Labor per unit corn 8 50 Labor per unit automobile 10 40 1. How many units of corn will the US produce should it exhaust all its labor force to produce corns? Group of answer choices 20 16 25 Not enough data 2. How many units of corn will India produce should it exhaust 3/4s of its labor force to produce corns? Group of answer choices 20 16 25 12 3. Between the USA and India, which country has a comparative advantage in the production of automobiles? Group of answer choices India USA None of the countries Not enough data 4. How many units of automobiles will the US produce should it exhaust half of its labor force to produce automobiles? Group of answer choices 20 10 25 Not enough data 5. How many units of automobiles will India produce should it exhaust all its labor force to produce automobiles? Group of answer…Give an economic relationship in which individual effect of independent variables are difficult to separate in the presence of multicollinearity.
