Check all of the following that are true. The Korean peninsula provides a useful natural experiment in which the effects of differing economic philosophies are stark Nations that repress their citizens tend to have some of the worst living conditions in the world Economically repressed North Korea had a GDP per capita (PPP) of $1,700 and a -1.1 percent GDP growth rate as of 2015, while South Korea and its much freer economy had a 2017 GDP per capita (PPP) of $39,400 and economic growth of three percent Nations that provide their citizens the most economic freedom (strongest rule of law, limited government, efficient regulation, and open markets) are the least prosperous

Check all of the following that are true. The Korean peninsula provides a useful natural experiment in which the effects of differing economic philosophies are stark Nations that repress their citizens tend to have some of the worst living conditions in the world Economically repressed North Korea had a GDP per capita (PPP) of $1,700 and a -1.1 percent GDP growth rate as of 2015, while South Korea and its much freer economy had a 2017 GDP per capita (PPP) of $39,400 and economic growth of three percent Nations that provide their citizens the most economic freedom (strongest rule of law, limited government, efficient regulation, and open markets) are the least prosperous

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Many years of past economic growth mean that the most-developed countries have ______. Group of answer choices so much wealth that less-developed countries will never be able to catch up. a higher rate of economic growth than the least-developed countries. overcome the problem of diminishing marginal returns on capital. greater output in a day than the least-developed countries do in a year.
Consider a numerical example using the Solow Growth Model, for 2 countries.Country A: d=0.1, s=0.3, n=0.01, z=1, F(K,L)=K0.3N0.7 Country B: d=0.1, s=0.2, n=0.01, z=1.5, F(K,L)=K0.4N0.6Which Country has a higher level of GDP per capita in steady state? Country A Country B Not enough information
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Which of the below examples of government involvement does NOT lead to economic growth, according to Wheelan? Group of answer choices Government provides as public goods items that are good for society but have a free rider problem that could lead to crippling costs to private enterprise if they provided them. Government provides uniform rules and regulations such as contract law, roots out fraud and ciculates a sound currency with relatively stable value. Government redistributes income and wealth from the rich to the poor such that income disparity is eliminated, and everyone makes about the same amount regardless of their ability or effort.
Country A has a natural climate that is perfect for growing strawberries - long sunny seasons and plenty of rich, well drained soil. Country A also has a big labor force with agriculture knowledge and can produce 80,000 baskets of strawberries in one growing season. By contrast, Country B’s climate is less well-appointed for strawberries - a shorter summer season with large areas of red clay. They also have a smaller population trained in agriculture. Country B can only produce 30,0000 baskets of strawberries in one growing season. In this scenario and with this information, Country A has Group of answer choices Absolute advantage for producing strawberries Comparative advantage for producing strawberries The lowest synthetic advantage for producing strawberries Elastic advantage for producing strawberries
Answer the following options Q#9) What has been true about the long term growth rate and growth path followed by the advanced nations since 1750 – the dawn of the “industrial revolution”? (a) GDP growth has been modest, continuing the same trend from previous eras (b) GDP growth has increased enormously due to technical advances Q#10) When the government takes the lead and pro-actively guides, supports and fosters technology advances and innovation, such as with the Internet, in aero- space (NASA) or Covid19 vaccines, which theory of economic growth is utilized? (a) Neo-Classical Theory (b) Classical Theory (c) New Growth Theory
Problem 2: Growth Models Solow Growth Model: Assume there is an imaginary country where output is produced according to the following constant returns to scale production function that lies at the heart of the standard Solow growth model: Y = 10K0.5 L0.5 Also assume that the savings rate is 13% (s = 0.13), the population grows at a rate of 2% per year (n 0.02), and capital depreciates at a rate of 2% per year (d = .02). (a) Which of the following is an expression of the production function in per-capita terms y expressed as a function of capital per worker k: i. Y = k0.5 ii. Y = 10k0.5| iii. y = k0.5 iv. y = 10k0.5 (b) What is the steady state level of capital per worker? (c) What is the steady state level of output per worker? (d) Suppose that the populist leader of our imaginary country increases the savings rate from 13% to 15%, i.e., (s = 0.15), what is the new steady state level of capital per worker? [Note: Assume that the other parameters n and d remain unchanged.] (e) [TRUE or…
Suppose there are two countries that are identical in every way with the following exception: Country A has a lower depreciation rate than country B. Given this information, we know with certainty that: a) the steady state growth rate will be the same in the two countries. b) the steady state growth rate will be higher in A than in B. c) Capital per worker, K/N, will be higher in B. d) Output per worker, Y/N, will be higher in B.
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