Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Chapter 23, Problem 4TY
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If BB represents a country's current production possibilities curve, what can you say about a point like X?
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- improving the education of workers
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Economics: Principles & Policy
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- 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.arrow_forwardDoes the absolute PPP imply the relative PPP? What about the other way around?arrow_forwardEconomic theory suggests that we can increase productivity byarrow_forward
- Draw a production possibilities frontier for a country that produces two goods: capital goods and consumption goods. Show a point of production that will allow a country to achieve the maximum amount of future growth while still producing a small amount of consumption goods.arrow_forwardHow will you differentiate an open economy from a closed economy? Explain with the help of an example.arrow_forwardUse a production-possibility curve to show how resource growth and improvement in technology can allow a nation to increase its production of government goods and services while also increasing its output of private goods and services.arrow_forward
- Hello, Can you explain? Can a technological advancement in sector “ X” of the economy affect the number of people who work in sector “Y” of the economy? Explain.arrow_forwardSay an economy begins with an initial level of capital per worker, k0, that is above its steady state level of capital per worker, k*. All else equal, what will happen to output per worker and capital per worker?arrow_forwardImagine two societies A and B with the production possibility curve shown in the diagram. In year t Society A produces only capital goods and Society B only butter In year t + 1 they both produce only butter. Which of the following describes both societies in year t + 1? A) A has a larger capital stock and A produces more butter. B) Both have the same capital stock but A produces more butter. C) Both have the same capital stock and both produce the same amount of butter. D) A has a larger capital stock but B produces more butter.arrow_forward
- if European banks lend this extra saving to businesses, which use the funds to build new factories, how might this leads to faster growth in productivity? Develop an argument by providing 2 practical examples.arrow_forwarddont chatgpt i will 5 upvotes Which of the following economic news items suggests a less favourable environment for investment? Select one1: A. Rising interest rates B. The Government lowers personal income tax C. GDP growth has increased D. All of the conditions suggests a less favourable environment for investment E. All of the conditions suggests a more favourable environment for investmentarrow_forwardtrue or false 1. Countries like finlamd and norway are unlikely to suffere from the scarcity problem as defined in economic theory? 2. in the economic circular flow model, capital formation is a flow that is mainly linked to firms? 3. equilibrium in any market can be described as the point where demand is equal to supply.arrow_forward
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