Consider the production functions represented in Fig 7a. When an economy moves from Point Sto Point V, what change could have caused this move?Technology 3Technology 2Technology 1Output per CapitaOG₂"5Fig. 7a----RSUVWC₁ C₂ C₂Capital (physical and human)a. an increase in the quantity of outputb. capital deepeningc. diminishing marginal productd. technological progress

Capital deepening means increase in per capita capital. Per capita capital means capital available…

Consider the production functions represented in Fig 7a. When an economy moves from to Point V, what change could have caused this move? Technology 3 Technology 2 Technology 1 G₂ Output per Capita 9 55 Fig. Ta R S U V W C₁ C₂ C₂ Capital (physical and human) a. an increase in the quantity of output

Consider the production functions represented in Fig 7a. When an economy moves from to Point V, what change could have caused this move? Technology 3 Technology 2 Technology 1 G₂ Output per Capita 9 55 Fig. Ta R S U V W C₁ C₂ C₂ Capital (physical and human) a. an increase in the quantity of output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 16 Infrastructure, such as public works and public services, is also referred to as O social capital. human capital. intangible capital. O tangible capital.
4. The country of Androde is currently using Method for its production function. By chance, scientists stumble onto a technological breakthrough that will enhance Androde's productivity. This technologi- cal breakthrough is reflected in another production function, Method 2. The accompanying table shows combinations of physical capital per worker and output per worker for both methods, assuming that human capital per worker is fixed. Method 1 Physical capital Real GDP per worker per worker 0 0.00 35.36 50.00 61.24 70.71 79.06 86.60 93.54 100.00 106.07 111.80 50 100 150 200 250 300 350 400 450 500 Method 2 Physical capital per worker 0 50 100 150 200 250 300 350 400 450 500 Real GDP per worker 0.00 70.71 100.00 122.47 141.42 158.11 173.21 187.08 200.00 212.13 223.61 a. Using the data in the accompanying table, draw the two production functions in one diagram. Androde's current amount of physical capital per worker is 100. In your figure, label that point A. b. Starting from point A,…
Two countries, Alpha and Beta, have identical production possibilities frontiers. If Alpha produces at point A and Beta produces at point B, then O A. Alpha's economic growth rate will exceed Beta's OB. Alpha's and Beta's economic growth rates will be the same OC. Beta's future consumption will be less than than Alpha's O D. Alpha consumes more than Beta today, but it will grow slower than Beta ó Capital goods (per person) B Consumption goods (per person) PPF
1. Assume that there are two countries with the following characteristics. Per capita Output Y = A.kª.h¹-a A-technology k-per capita physical capital h-per capita human capital a-0.6 Country A with $500 per capita income saves 25% of its output and invests on physical capital, and 25% on investing in human capital. Country B with $5000 per capita income saves 25% of its output and invests on physical capital, and 35% on investing in human capital. a. What are the growth rates of the two countries? b. What will be the per capita income levels after 5 years? c. Will there be convergence on the per capita income in the future?
4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 50 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2018 and 2068. Sporon Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker) 2018 11 30 1,800 2068 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker) 2018 8 30 900 2068 13 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Tralfamadore. From 2018 to 2068, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Sporon…
In the Cobb-Douglas production function, Y = K°L!-a, if a = 1/4, then O labor's share of GDP is half. O capital's share of GDP is one-fourth. capital's share of GDP is three-fourths. capital's share of GDP is four.
Financial development, social capital, favourable business regulation, trade openness are different aspects of ‘social capability’ influencing innovation processes and, therefore, economic development. Make a ranking of these factors according to their observed degree of importance for economic development.Explain why ‘inclusiveness’ and ‘equality in opportunities’ can strengthen the innovation capability of an economy?
Question 9 The diagram below shows two production possibility frontiers for a country. Consumer Goods A B C D A A to C B to C C to D D to E B C E D Which of the following is most likely to represent an increase in short run economic growth. A movement from Capital Goods
4. The catch-up effect Consider the economies of Blahnik and Gribinez, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 50 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2019 and 2069. Year 2019 2069 Year 2019 2069 Physical Capital (Tools per worker) 11 16 Physical Capital (Tools per worker) 8 13 Blahnik Labor Force (Workers) 30 30 Output (Gobs of goo) 1,800 2,160 Gribinez Labor Force (Workers) 30 30 Output (Gobs of goo) 900 1,620 Productivity (Gobs per worker) Productivity (Gobs per worker) Initially, the number of tools per worker was higher in Blahnik than in Gribinez. From 2019 to 2069, capital per worker rises by 5 units in each country. amount than productivity in Gribinez. This illustrates The 5-unit change in capital per worker…
Last year real GDP per person in the imaginary nation of Olympus was $4,260. The year before it was $4,100. By about what percentage did real GDP per person grow during the period? a. 1 percent b. 0.04 percent c. 16 percent d. 4 percent
QUESTION 28 1. Production Possibilities (alternatives) A B с D Capital goods Consumer goods E 5 0 F 4 5 3 2 9 Is unobtainable in this economy 1 0 12 14 15 Refer to the above table. A total output of 3 units of capital and 4 units of consumer goods: Would involve an inefficient use of the economy's scarce resources Will result in the maximum rate of growth available to this economy Is irrelevant because the economy is capable of producing a larger total output
If country A produces 6,000 units of goods and services using 600 hours of labor, and country B produces 5,000 units of goods and services using 450 units of labor, then productivity is higher in Country B than in Country A. Select one: O a. Fales. O b. True.