Plz answer the both questions will you get upvote Question 17If the production function of ideas in the economy isas folos%3Dthen the function exhibitsO Decreasing returns to the stock aof knowledge but increasing returs overalO Increasing returns to the stock of knowledge but decreasing retums overalO Decreasing returns to scale (in all inputs)O Constant returns to scale (in all inputs)Question 16Consider two economies that follow the Romer model developed and presented in classes. The bwoeconomies are neighboring countries that are otherwise identical, but country A has three times thelabor force as country B. According to the Romer model, what is the gowth rate of output percapita of country A relative to country B?O Growth rate of country A ls three times the growth rate of country BO Growth rate of country A is one third the gyowth rate of country BO Growth rate of country A is the same as growth rate of country BO We don't have enough information to answer the question

17. If we double both inputs the output is more than doubled, but if we double only the stock of…

Question 17 If the production function of ideas in the economy is as follows %3D then the function exhibits O Decreasing returns to the stock of knowledge but increasing returns overal O hcreasing returns to the stock of knowledge but decreasing retums overal O Decreasing returns to scale (inal nputs) O Constant returns to scale (in all inputs) Question 16 Consider two economies that follow the Romer model developed aznd presented in classes. The two economies are neighboring countries that are otherwise identical, but country A has three times the labor force as country B. According to the Romer model, what is the gowth rate of output per capita of country A relative to country B? O Growth rate of country A is three times the growth rate of country B O Growth rate of country A is one third the gowth rate of country B O Growth rate of country A is the same as growth rate of country B O We don't have enough information to answer the question

Question 17 If the production function of ideas in the economy is as follows %3D then the function exhibits O Decreasing returns to the stock of knowledge but increasing returns overal O hcreasing returns to the stock of knowledge but decreasing retums overal O Decreasing returns to scale (inal nputs) O Constant returns to scale (in all inputs) Question 16 Consider two economies that follow the Romer model developed aznd presented in classes. The two economies are neighboring countries that are otherwise identical, but country A has three times the labor force as country B. According to the Romer model, what is the gowth rate of output per capita of country A relative to country B? O Growth rate of country A is three times the growth rate of country B O Growth rate of country A is one third the gowth rate of country B O Growth rate of country A is the same as growth rate of country B O We don't have enough information to answer the question

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter1: The Role And Method Of Economics

Section: Chapter Questions

Problem 8P

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France and Poland each have one worker whosemonthly linear Production PossibilityFrontier indicatesthe following production possibilities: PolandFranceComputers (C) 246Grain (G) 43 a)Franceâ€™sopportunity cost of G in terms of units of C equals ______ ? b) Polandâ€™sopportunity cost of G in terms of units of C equals ______ ?For the followingparts, please complete the questions by filling in the blank, and responding toremainderof the question: c) Polandâ€™scomparative advantage is in ______ because: d) If France and Poland decide to trade, _________ will be theexporter of G while ______ will bethe importer because: e) If the economies choose to trade, the world relative priceof goods must be ________ in orderfor trade to be mutually beneficial, because:
France and Poland each have one worker whosemonthly linear Production PossibilityFrontier indicatesthe following production possibilities: PolandFranceComputers (C) 246Grain (G) 43 a) Franceâ€™sopportunity cost of G in terms of units of C equals ______ ? b) Polandâ€™sopportunity cost of G in terms of units of C equals ______ ?For the followingparts, please complete the questions by filling in the blank, and responding toremainderof the question: c) Polandâ€™scomparative advantage is in ______ because: d) If France and Poland decide to trade, _________ will be theexporter of G while ______ will bethe importer because: e) If the economies choose to trade, the world relative priceof goods must be ________ in orderfor trade to be mutually beneficial, because: 4.In the following problem, assume that the UK currency is the pound sterling (PST)and thecurrency in the restof the Europe is the euro (EUR). Suppose that thePST appreciates relative to the EUR. For the following parts, you will…
Show that, when using a traditional economic production function,doubling our population can double our output if capital stocks alsodouble. Use the production function: Q = AK L , where A representstechnology in an economy, K capital, and L labor. Double K and L andshow that Q also doubles, assuming α=β=1/2. Now show that, when we incorporate natural capital into thediscussion, doubling the population does not increase output in thesame way (since natural capital cannot also grow). Use theproduction function: Q = AK L N , where N is natural capital. DoubleK and L and show that Q less than doubles, assuming α=β=γ=1/3.
The world in which we live is complex and to understand it, human beings make use of some orother simplification process. A theory can accordingly be seen as an attempt to simplify things.Such an observation may come as a surprise to those who have often heard remarks to the effectthat such and such a theory is difficult, or at the least terribly complicated. We should neverthelessremind ourselves that a theory involves an attempt to simplify things – it is the world out there thatis the complicated entity. A particular theory (or model) is merely trying to reduce it to manageableproportions, at least as far as understanding our environment is concerned.”In economics, theory is presented in a simple form by making the…1.23a) Post hoc assumptionb) Fallacy of compositionc) Ceteris paribus assumptiond) Blinkered approach
Hey! Need help with the following Macroeconomics question, it is divided into three smaller sub-questions. Chart it attatched below. Thank you in advance! Assume that the country Lusitania has two industries, clothing production and computer chip production. At first, both industries have identical aggregate production functions. The following table shows how the output of each industry is affected by a change in efficiency units of labor. Using the data in the table, draw a graph showing how output (on the y-axis) changes with efficiency units of labor (on the x-axis). What explains the shape of the graph? Why is it valid in this case to plot output against the efficiency units of labor and leave the stock of physical capital in the background? A Lusitanian inventor has produced a new technology that doubles the output of computer chips for any combination of capital and labor. Explain, using an equation, how this invention affects the production of computer chips. Create a new…
Assume an economy producing only two goods (shoes and computers) with a fixed amount ofproductive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions:i. Draw the economy’s production possibility frontier on hindsight of the relevantassumption.ii. Why are points outside the frontier unattainable? iii. Identify three ways by which the economy can attain the level of production outside thePPF. iv. What happens to the PPF when technological change overwhelmingly favours theproduction of computers? v. What happens to the PPF when the economy discovers an improved technology forproducing shoes? vi. Assume now that the sacrifice ratio is greater than 1, show what will happen to the…
By using the concept of the Heckscher-Ohlin model, and information assumptionsbelow this i. Two factors of production, namely Labor and Landii. Two production goods, namely Cloth and Foodiii. Cloth production is labor intensiveiv. Food production is land intensivev. The rest are other HO assumptionsvi. aLC, aTC, aLF, aTF, and a*LC, a*TC, a*LF, a*TF areLabor and Land input units used for the production of eacheach Cloth and Foodvii. w is the factor price of Labor and r is the factor priceLand production a) Show that Cloth is a commodity that is labor intensive and Foodis a land intensive commodity?k) According to the Stolper-Samuelson Theorem, an increase in the relative price of outputPC/PF, how does it affecta) The relative income of the factors of production Labor and Land or w/r?b) Land/Labor Ratio? l) According to the H-O Model, a country has a comparative advantagein producing a commodity when? Give an example. m) According to Rybczynski theorem with an increase in the factor of…
Using sound economic theory, develop a macroeconomic econometric model that would test the relationshipbetween globalisation and economic development in South Africa. You are to state the a priori expectations ofwhat the model would tell us, and you are to write the model using ‘Word Equation’. Finally, each variable that isincluded must be justified regarding its relevance for being there.
Shows in table how the average costs of production for semiconductors(the“chips”incomputermemories) change as the quantity of semiconductors built at that factory increases. a. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? b. If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? c. Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
) Consider the following IS-LM model set upC = 300 + 0.8(Y − 2500)I = 3500 − 400(r)G = 3000T = 2500(M/P)s = 2600Md = 2000 −1000(r) + 0.2(Y)(a) Using the IS equation, if r is 3 howmuch is Y?(b) Using the LM equation, if Y is 19000how much is r? (c) Find equilibrium r and Y, andplot IS-LM equilibrium
A production possibilities curve is drawn basedon which of the following assumptions?a. Resources are fixed and fully employed, andtechnology advances at the rate of growth ofthe economy overall.b. Resources such as nonrenewable resourceswill decline, but labor remains fullyemployed and technology is unchanged.c. Resources can vary; most resourcesexperience times of unemployment; andtechnology advances, particularly duringwartime.d. Resources such as labor and capital will growand are fully employed, and technology isunchanged.e. None of the answers correct.
please asnwer the question in the image Some economists believe that the U.S. economy as awhole can be modeled with the following productionfunction, called the Cobb–Douglas production function:Y 5 AK1/3L2/3,where Y is the amount of output, K is the amount ofcapital, L is the amount of labor, and A is a parameterthat measures the state of technology. For this productionfunction, the marginal product of labor isMPL 5 (2/3) A(K/L)1/3.Suppose that the price of output P is 2, A is 3, K is1,000,000, and L is 1,000. The labor market is competitive,so labor is paid the value of its marginal product.a. Calculate the amount of output produced Y and thedollar value of output PY.b. Calculate the wage W and the real wage W/P. (Note:The wage is labor compensation measured in dollars,whereas the real wage is labor compensationmeasured in units of output.)c. Calculate the labor share (the fraction of the value ofoutput that is paid to labor), which is (WL)/(PY).d. Calculate what happens to output Y,…