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.

Q: Consider an offshoring model such as the one illustrated in Figure 7‑1 in the text. In this model, t...

A: Answer:- Through the given statement, the wages for profoundly gifted work in the home nation are mo...

Q: Suppose Arendele's real GOP per capta was 535.000 i 2012 in 2013 and 2014, Rincreased to 536,400 and...

A: The growth rate is the percentage change in a specified variable over a given time period. The compo...

Q: Question 31 An economic downturn can lead mainly to which type of unemployment? a) structural O b) f...

A: Unemployment: Unemployment is a state of affairs in which all people who are actively looking for wo...

Q: Burger demand curve is represented by the following equation:T=10-Q .  a.If at the current market pr...

A: T=10-Q  Here since it is the demand curve T equals the price. ep = dQdP x PQ but here P equals T so ...

Q: 4. Basil and celery leaves are substitutes in making noodle soups. A rare drought destroyed a good p...

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...

Q: Data from the Bureau of Labor Statistics shows that U.S. income increased by 10% while consumer data...

A: Income elasticity of demand states that how much a good will be demanded in response of change in th...

Q: According to the principle of , consumers determine what is produced in the economy through their pu...

A: Consumer behavior is the study of what motivates people and businesses to buy particular things and ...

Q: What is average fixed cost? O the price of a fixed factor of production the total cost divided by th...

A: please find the answer below.

Q: FIGURE 7-3 $100 90 80 70 40 30 20 10 1 2 3 4 5 6 7 8 9 10 Quantity of Output Refer to Figure 7-3. Wh...

A: please find the answer bThe marginal cost (MC) curve is calculated by dividing the change in total c...

Q: Answer the following questions:   Instructions: Enter your answers rounded to the nearest whole numb...

A: MPC, marginal propensity to consume is the proportion of change in income that is spent on consumpti...

Q: Honey bees kept by beekeepers pollinate flowers and plants nearby (not just those owned by the beeke...

A: The socially optimal cost to charge an individual for any great is the marginal expense of giving th...

Q: Question 21 A company in the United States produces dog treats and sells them to consumers in France...

A: Component of GDP:-                               GDP= C+I+G+NX where; C=ConsumptionI=Investment G= G...

Q: 3. Assume that there is a decrease in consumer confidence in the small open economy of Economica. Th...

A: Consumer confidence is one of the factors that influence market confidence because a change in consu...

Q: how does endogenous growth theory explain economic growth

A: Neoclassical growth model: - Neoclassical growth model was first given by Robert Solow and Trevor Sw...

Q: If the price of industrial plastic injection molding machines rose by 20% and the price of oranges f...

A: CPI stands for consumer price index. Where consumer goods basket are included to calculate the the i...

Q: Question 1 An economy is described by the following equations, where all the variables have the usua...

A: Given  Consumption expenditure C =1700 +0.8(Y-T)-2000r                ... (1)Planned investement exp...

Q: 5.1 Suppose an economy's production function is Y = AK"L1«. If the annual rat conomic growth is 4.5 ...

A:

Q: In a bilateral monopoly, what is the impact on the supply of labor compared to a competitive labor m...

A: Answer-  

Q: b) households; automobiles

A: By definition, Consumption, in Economics, is the use of goods and services by households. Consumptio...

Q: Marketopia's real GDP was $520 billion in 2014 and $550 billion in 2015. Its population was 150 mill...

A: GDP(gross domestic product) per capita is obtained by dividing the GDP by population. It is useful t...

Q: what is Regressive Tax System in economics?

A: A regressive tax system refers to the system of taxation where tax rate and taxable amount are inver...

Q: O Consi der Hhe follwing Cournot medel. » The inverse femand funstion is given by p= 30-0 where Q = ...

A: Dear Student as you have posted multiple sub-parts in a question but according to the policies and g...

Q: A country has just one resource - labor - that it can use to produce two goods, books and clothing. ...

A: Answer-

Q: Firms that are confronted with union demands for higher wages may choose production methods that inv...

A: The markets are the place where the goods and services are sold, and purchased. These products are p...

Q: Refer to the figure below. According to this graph, the relationship between hours of study time and...

A: When two variables are positively/directly related it means that when one variable's value rises, th...

Q: The growth rate of nominal GDP was 9.4%, and the growth rate of real GDP was 7.4% for Iceland in 201...

A: Gross domestic product (GDP) is a monetary measure of the market value of all final goods and servic...

Q: What happens when a firm does not agree to the wages the employees of a union demand? Select the cor...

A: In the mentioned question, we have been asked about the upcoming situation when the firm does not ag...

Q: Question 1: In each state, how many stable steady states are there? Question 2: In each state, which...

A: Introduction: Stagnation trap is characterized by the existence of both a liquidity and a growth tra...

Q: To study macroeconomics, one needs various models with different assumptions about the flexibility a...

A: Macroeconomics is the branch of economics that deals with issues concerning the economy as a whole.

Q: You manufacture t-shirt. For a batch of 2,500 t-shirts, your fixed cost total P100,000 and your unit...

A: Total cost is the sum of variable cost and fixed cost. Fixed cost remains same at all levels of outp...

Q: Which two characteristics best describes a mixed economy? O A. Domestic trade and international trad...

A: Command economy: - a command economy is a controlled economy where all economic decisions are taken ...

Q: Which of the following is an explicit cost? O the depreciation of a computer O the cost of hiring a ...

A: please find the answer below.

Q: Brazil trades bananas to the US and the US trades planes to Brazil. The current exchange rate betwee...

A: Below is the given information: *Exchange rate = 1 Real per $0.20 *Brazil export banana to the US. *...

Q: KIND can be considered a "social enterprise." Again, what does the term mean? Whatever the term mean...

A: Social Enterprise: Businesses that change the world for the better are known as social enterprises. ...

Q: A consumer has product happiness function c1*c2. When this consumer eats 5 apples and 3 bananas, the...

A: Happiness function: - It shows the functional relationship between the consumption of goods and serv...

Q: Provide a plausible explanation, using a demand-supply graph, for each of the following outcomes: 1...

A: In a competitive market, the equilibrium price and quantity of a good are determined at a point wher...

Q: Current price level, labeled PL1 Current real output, labeled Y1 Full-employment output, labeled YF

A: “Since you have asked multiple questions, we will solve the first three parts of the question for yo...

Q: Use the following model framework to conduct an intertemporal analysis of the stock pollution. In ea...

A: GIVEN   time period t Mt = pollution flow (emission) At = pollution stock (concentration in atmosp...

Q: If you were in a position to run an economy, what steps would you take to raise our rate of economi...

A: Answer: *If i were in a position to run an economy *The following steps would be undertaken to raise...

Q: Assume that the MC of producing steel does not include the cost of the damage to the environment as ...

A: In the market, it is given that the marginal cost of producing steel does not include the damage it ...

Q: Question 24 Which of the following is a topic of macroeconomics? a) production in the automobile ind...

A: Price level is the normal of current costs across the whole range of labor and products delivered in...

Q: 20 18 S 16 14 12 10 8 Page 1 D 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity Suppose that supply and d...

A: $6 per unit tax imposed on the buyers means that the buyers will pay $6 more than what the sellers w...

Q: Compute the economy's GDP using the expenditure approach. Assume that all transactions are 2019. C G...

A: GDP = consumption expenditure + investment expenditure + government expenditure + net exports

Q: Problem 3. The demand and supply schedules for potato chips are Quantity Demanded (millions of bags ...

A: The concept of supply refers to the quantity of a product, item, commodity, or service that a provid...

Q: The value of x is 0<x<90. For what value of x is (D, R) a risk dominant equilibrium.  Game      ...

A: Introduction Risk dominance is a related refinement of Nash equilibrium. It is concept of game theor...

Q: The vertical distance between points A and B represents a tax in the n 1Price 12 11+ 10 Supply 9 8+ ...

A: The total surplus is sum of consumer surplus and producer surplus.

Q: From the diagram below we can see that: B Julia's IC 0- 4950 Consumption now ($) Select one or more:...

A: Given, Julia's consumption later: Julia's consumption now =51.5: 49 =50: 50 Thus, with moving downwa...

Q: Suppose a primitive economy consists of two industries, farm products and farm machinery. Suppose al...

A: Introduction Two industry farm product industry and machinery industry has given. both of them's tec...

Q: If Mary Smith withdrew $100 from her savings deposit at Bank of America and kept it as cash,   Gro...

A: The economics as a study is based upon the idea that the resources which are present with the econom...

Q: # of Pickers Total # of Strawberries Picked 1 180 380 580 4. 780 940 6. 1080 1180 1160 9. 1080 Refer...

A: In the mentioned question, we have been asked about the total product of labor curve and asked at wh...