Consider the path of output per person over time in the Romer model shown below, where the y-axis is the natural logof output per person (which is equivalent to using a ratio scale on the vertical axis).populationOutput per Personideas efficiency parameter3.532.50.5O share of labor engaged in productionsaving rateO growth rate of the population002——————-4TimeAt time t = 3, the change in the trajectory of this economy can be explained by a change in one of the parameters of theRomer model, namely an increase in6810Pa

Romer model of growth:Romer model of growth given by Paul Romer, presents the growth as a result of…

Consider the path of output per person over time in the Romer model shown below, where the y-axis is the natural log of output per person (which is equivalent to using a ratio scale on the vertical axis). Output per Person O saving rate 3.5 O growth rate of the population 3 2.5 O population O ideas efficiency parameter O share of labor engaged in production 2 1.5 1 0.5 0 0 2 ‒‒‒‒‒‒‒‒ 4 Time At time t = 3, the change in the trajectory of this economy can be explained by a change in one of the parameters of the Romer model, namely an increase in 6 8 10

Consider the path of output per person over time in the Romer model shown below, where the y-axis is the natural log of output per person (which is equivalent to using a ratio scale on the vertical axis). Output per Person O saving rate 3.5 O growth rate of the population 3 2.5 O population O ideas efficiency parameter O share of labor engaged in production 2 1.5 1 0.5 0 0 2 ‒‒‒‒‒‒‒‒ 4 Time At time t = 3, the change in the trajectory of this economy can be explained by a change in one of the parameters of the Romer model, namely an increase in 6 8 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The last 2 question please
Consider the circular flow model: suppose that businesses buy a total of $220 billion of the four resources (land, labor, capital and entrepreneurial ability) from households. If households receive $120 billion in wages, $24 billion in rent, and $49 billion in interest, how much are households paid for providing entrepreneurial abiltity? A. $360 billion B. $60 billion C. 27 billion D. $100 billion
Suppose that Verania and Josimar are roommates that need to complete some household chores. Vacuuming and washing dishes need to be done. They know from the last time they did these chores that it takes Verania 2 hours to vacuum and 1 hour to wash dishes. It takes Josimar 3 hours to vacuum and 2 hours to wash dishes. Josimar says it does not matter which task each of them performs because Verania is faster at both tasks. Josimar’s reasoning a. is wrong. Because Verania has a comparative advantage in washing dishes, she should wash dishes, and Josimar should vacuum. b. is correct. Because Verania is faster at both tasks, there is no benefit in each volunteer specializing in one task or the other. c. is wrong. Because Verania has an absolute advantage in both tasks, she should perform both tasks herself. d. is wrong. Because Josimar has a comparative advantage in washing dishes, he should wash dishes, and Verania should vacuum.
The question 3 and 4 please
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What is the downside of using prizes to promote the creation of new technology? O It slows the spread and development of those ideas by restricting competition. Government money may be misdirected towards unproductive projects. O It prohibits competition forever. O Without a market test, prizes might be given to technology which ends up being useless. According to the Solow model, what portion of total savings in the economy goes towards investment? 50% 10% 90% O 100%
The table below shows the GDP of a country measured in trillions of dollars. What is the growth rate of the GDP of this country in 1999? Year 1998 1999 2000 2001 Profit $526.42 $527.10 $533.69 $541.70 O a) -0.02% O b) 0.04% O c) 0.08% O d) 0.13% O e) 0.18% O f) 0.25% g) There is not enough information to tell.
Refer to the production possibility frontiers for two friends Frodo and Sam who can both produce Ice creams and Jelly beans. Frodo's maximum production of Ice creams is 500 with no Jelly beans, or 2,000 Jelly beans with no Ice creams. Sam's maximum production of Ice creams is 600 with no Jelly beans, or 1,200 Jelly beans with no Ice creams. ICE CREAMS ICE CREAMS 600 500 1200 JELLY BEANS 2000 JELLY BEANS Frodo' PPF Sam's PPF Answer briefly these TWO questions in the box space provided below. Part A: Assuming efficient production without trade, derive the maximum amount of Jelly beans that can be produced by Sam along with 300 Ice creams. Describe your steps in detail. Part B: Assume that Frodo and Sam agree to specialize in production and trade between themselves. Frodo offers 1,000 Jelly beans to Sam in exchange for 300 lce creams. Would Sam agree to this trade?