2 Compute per-capita real GDP in year 2 in the two islands. Pick the closest values.O In East Land it is between 20.75 and 21.50 units of output. In West Land it is higher.In East Land it is between 16.35 and 16.94 units of output. In West Land it is higherNone of the other optionsO In East Land it is between 21.75 and 22.25 units of output. In West Land it is lower.Suppose the annual cost of the STEM subsidy is 0.5 units of output per person.Can the West Land government justify the subsidy on the basis of the per-capitaincome gains during years 1 and 2?O None of the other options.Yes. The cumulative net gain, adding the two years, is larger than 2.5 units of outputper person,Yes. The cumulative net gain, adding the two years, is larger than 4.5 units of outputper person.O No. The cumulative net gain, adding the two years, is exactly zero.O No. The cumulative net gain, adding the two years, is negative. Problem 2Consider two island countries: East Land (EL) and West Land (WL). The economies of these islandsbehave like the Romer model. The two islands are far apart and neither ideas nor people travel from one tothe otherIn the initial year (t-0) the two islands are identical in terms of all parameter values: initial knowledge levelAD-20, research productivity z-1/500, workforce equal to 500 and 5% of the workforce employed inresearch and development. Assume that the population equals the workforce.In year te1, West Land decides to introduce a subsidy to STEM (Science, Technology, Engineering andMath) by providing free college tuition to students majoring in STEM fields. As a result, the share of theworkforce doing RSD in West Land rises to 10%. In contrast, East Land does not adopt the subsidy. Use 2decimals in your calculations.Compute the innovation rate (i.e. annual growth rate in knowledge) in the twoislands. Which of the following is correct?O The innovation rate in East Land is 5% and in West Land 10%.The innovation rate in East Land is between 8 and 12% and in West Land it is exactly22%O None of the other optionsThe innovation rate in East Land is 3.4% and in West Land between 11% and 12%Compute per-capita real GDP in year 1 in the two islands. Pick the closest values.In East Land it is between 19.90 and 20.00 units of output. In West Land it is lowerthan in East Land.In East Land it is between 12.20 and 13.00 units of output. In West Land it is higherthan in East Land.In East Land it is between 27.30 and 28.00 units of output. In West Land it is lowerthan in East Land.O None of the other options

The following formula can be used to determine the innovation rate for the Romer model:Where:g is…

Compute per-capita real GDP in year 2 in the two islands. Pick the closest values. In East Land it is between 20.75 and 21.50 units of output. In West Land it is higher. In East Land it is between 16.35 and 16.94 units of output. In West Land it is higher None of the other options In East Land it is between 21.75 and 22.25 units of output. In West Land it is lower.

Compute per-capita real GDP in year 2 in the two islands. Pick the closest values. In East Land it is between 20.75 and 21.50 units of output. In West Land it is higher. In East Land it is between 16.35 and 16.94 units of output. In West Land it is higher None of the other options In East Land it is between 21.75 and 22.25 units of output. In West Land it is lower.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

i will 10 upvotes no chat gpt
How any coffee shop could be CSR?
I need help with HW.
The graph shows the market for mugs in which the government has imposed a tax of $4 per mug. Draw a point to show the price paid by buyers and the quantity bought. Draw shapes that represent the following: 1) consumer surplus. Label it CS. 2) producer surplus. Label it PS. 3) the tax revenue received by the government. Label it TR. 4) the deadweight loss created by the tax. Label it DWL. >>> A label can be repositioned by clicking on the edge of the label box and dragging it onto the shape. esc ↑. C Selected: none $ ▸ 0
How do sales taxes typically apply in a business environment?
M1
There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed in the attached table. If the tenants have the right to be free of loud music enforced through a property rule, how many bands will play in Rock‐n‐Roll Bar on a Saturday night? A. Zero B. One C. Two D. Three E. It depends on transaction costs
where did 118.8 come from?
why choose A?
Pls help ASAP
What are the Revenue projects?
There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below. Assume the bar owner has the right to hire as many bands as she likes. Iftransaction costs were $90, split between the bar owner and the tenants, how manybands would play? What would social welfare be? A. Three bands would play and social welfare would be ‐100.B. Two bands would play and social welfare would be 75.C. Two bands would play and social welfare would be ‐15.D. No bands would play and social welfare would be 0.E. Three bands would play and social welfare would be ‐190