Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor. Calculate capital labor ratio in these two countries ?
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Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor. Calculate capital labor ratio in these two countries ?
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- Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor. which country capital abundant.Suppose France has a per capita GDP that is 0.7 times the United States GDP. It has a capital-per-person ratio that is 0.9 times that of the United States. Compared to the United States, what is the implied value of total factor productivity for France?Suppose labor and capital are the only two factors of production. If Malaysia has 3% of the world’s capital resources and 1% of the world’s income, then Malaysia would be considered a. relatively more abundant in the land b. an emerging market economy c. a capital-abundant country d. a labor-abundant country
- Countries X and Y have the same amount of labour and the same level of technology, but country X has less capital. Country X's labour productivity will be __________ Y's and its total factor productivity will be __________ Y's. higher than; lower than higher than; the same as the same as; lower lower than; lower than lower than; the same asConsider a small island country whose only industry is printing. The following table presents information about this small economy in two different years. Complete the table by calculating physical capital per worker and labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor.If country A produces 6,000 units of goods and services using 600 hours of labor, and country B produces 5,000 units of goods and services using 450 units of labor, then productivity is higher in Country B than in Country A. Select one: a. Fales. b. True.
- What is the opportunity cost of investing in Capital? Do you think a country can overinvest in capital? What is the opportunity cost of investing in human capital? Do you think a country can overinvest in human capital? Explain with your own language and give the example of country that overinvest in capital and human capital!What is the cost ratio of capital goods to consumer goods in Germany? What is the cost ratio of capital goods to consumer goods in France? Solve for a terms of trade ratio that will be mutually beneficial for both nations so that they will want to engage in trade with one another.Outline the main factors which determine the level of productivity in a country.
- Consider a small island country whose only industry is weaving. The following table shows information about the small economy in two different years. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Year Physical Capital Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity (Looms) (Workers) (Looms) (Hours) (Garments) (Garments per hour of labor) 2016 160 40 2,000 20,000 2017 180 60 3,900 29,250 Based on your calculations,____________in physical capital per worker from 2016 to 2017 is associated with___________in labor productivity from 2016 to 2017. Suppose you're in charge of establishing economic policy for this small island country. Which of the…Suppose there are two contrasting impacts of a massive war, where a large number of countries were involved (e.g. World War II), on two large countries (Ping and Pong) in the world. Ping suffered a massive destruction of its capital stock relative to its population, while Pong suffered a huge loss of its population relative to its capital stock. That is, capital labour ratio suddenly fell in Ping and rose in Pong. For simplicity that all other things remained same. Assuming that both the country were in steady-state before the war, show the impact of the war on these two countries using a Solow diagram (i.e., capital labour ratio on the horizontal axis and output and savings on the vertical axis). Clearly draw and write your answerBetween 1960 and 2010 the annual growth rate was 3% in country A and 1% in country B. The two countries are in the process of convergence if: (a) in 1960 country A was poorer than country B (b) in 1960 country A was richer than country B (c) since 1960 the capital output ration has increased more in country A than in country B (d) the savings rate is higher in country A than country B (e) both (a) and (c)
