For the first 2 questions: Suppose that income (output) grows at 15 percent, capital grows at 6percent, and labor grows at 3 percent. Suppose Y-AK'N-, with 8 = 1/3.1. What is productivity growth?A) 10%B) 11%C) 12%D) 13%2. What is the growth of income per capita (income per worker)?A) 10%B) 11%C) 12%D) 13%3. In the Romer model, productivity improvement continues indefinitely ifA) Researchers have constant productivityB) Production is subject to perfect competitionC) Old ideas help generate new ideasD) There is no growth in any country4. Which of the following statements about Total Factor Productivity (TFP) is true?A) TFP is the fraction of output that cannot be explained by factor inputs.B) TFP is the most important factor in accounting for low output per worker in poor countries.C) Resource misallocation across firms can be a reason for low TFP.D) All of the above.5. Read the article "The Productivity Puzzle". Which one of the following is a reason that the U.S.has experienced a decline in productivity growth since 2014?A) Values of digital products are difficult to measure.B) Low investment demandC) It takes time to translate technological advances into productivity gains.D) All of the above1

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Answered: For the first 2 questions: Suppose that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. According to Malthus, how does economic growth and population relate to each other?
Which of the following statements about economic growth is false? a) Economic growth solves the economic problem. b) Economic growth can be helped by having new technology. c) Economic growth can be helped with more education. d) Economic growth can be helped by using tidal power
1. Many endogenous growth models feature so called scale effects: per capita growth rises when population growth rises. Some economists have criticized these models for this reason, since countries with faster population growth do not in general appear to also experience faster per capita income growth. Consider an economy that has access to a production technology Y = AKª L¹-a where Y is output, A is the level of technology, K is capital and L is the amount of labor in the economy. Capital evolves according to K = SY (thus, the depreciation rate 6 = 0). The population growth rate is n. (Throughout, gx, where x can be any of the variables in the model). i. Assume that technology is determined by A =BK What sort of endogenous growth model is this? Find gk in terms of the K, L, and other parameters of the model. ii. Write an expression for gy in terms of gk and g₁. What must be true for a balanced growth path to exist in this model? Solve for the balanced growth path value of gy and gy,…
1. Discuss the factors that contribute to economic growth. 2. List and briefly describe the 17 Sustainable Development Goals (SDGs). Give examples Note: Question 1 ask that you discuss the determinants of Economic Growth: I have created a list of 10 factors and suggest that in responding to the question you discuss at least 5 of the factors: 1. Quality and Quantity of a Country's resources 2. Technology 3. Improvements and greater stock of resources 4. Increased productivity 5. Savings and Investment including investment in human capital 6. Infrastructure 7. Research AND Development 8. Protection of Property Rights 9. Free Trade 10. Education
A. Investment in "infrastructure" represents spending on: O roads, bridges, canals, etc. O human capital (education) O government institutions O innovation to physical capital B. Which of the following was not one of Thomas Malthus' assumptions regarding population and economic growth? O Per-capita income would increase. O The economy was agriculturally based O The supply of land was fixed O The population would continue to increase
Problem: Imagine you have two competing athletes who have the option to use an illegal and dangerous drug to enhance their performance (i.e., dope). If neither athlete dopes, then neither gain an advantage. If only one dopes, then that athlete gains a massive advantage over their competitor, reduced by the medical and legal risks of doping (the athletes believe the advantage over their competitor outweighs the risks from doping ). However, if both athletes dope, the advantages cancel out, and only the risks remain, putting them both in a worse position than if neither had been doping. What outcome do we expect from these two athletes? Please use ideas like concepts of monopolies, Oligopolies and Game Theory and Factor markets for this scenario.
Need some help figuring this out
38. Suppose there are two countries that are identical in every way with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run: a. more information is needed to answer this question b. the growth rate of output per capita will be the same in the two countries c. the growth rate of output per capita will be greater in A than in B d. the growth rate of output per capita will be greater in B than in A QUESTION 39 39. In the long-run steady state, which of the following is affected by an economy's rate of saving? a. output per worker. b. capital per worker. c. the level of investment d. all of the above.
Which of the following statements best describes the relationship between Economic Growth and Literacy Rates ? A. Literacy Rates decline as Economic Growth improves because Education is less useful in a developed economy. B. Increased Literacy initially stimulates Economic Growth by improving Labour Productivity but declines as the Opportunity Cost of Education increases with long-term Economic Growth. C. Increased Literacy stimulates Economic Growth by increasing Labour Productivity; People consume more Education as the Economy continues to grow. D. There is no correlation between Economic Growth and Literacy Rates.
Assume there are 100 workers and each worker produces 100 outputs. If the workforce is growing by 1% a year but productivity does not improve, how fast can output increase?
Problem 5 A “miraculous" Asian economy has an aggregate wage bill of 300 billion dollars and an aggregate GDP of 500 billion. The annual growth rate of aggregate GDP for this economy over the last 10 years was 7 percent (that is AY/Y=0.07) and the growth rate of labor was 6 percent (AL/L=0.06). Imagine that the production function is given by the standard Cobb-Douglas AK“L“. ,а, 1-а Y What are the "capital share (a)" and the "labor share (1 – a)"? b. Imagine that the government controls the national accounts. In its quest to improve its reputation, the government mistakenly thinks that having "a lot of investment" will make it look good so it "inflates" its growth of capital number to 12% (AK/K=0.12). When researchers estimate the rate of productivity growth (AA/A), what will they find? Is the growth rate of technology positive or negative? Does your result in (b) make sense? d. The actual truth is that the growth rate of capital was one half of what it announced. That is, instead of…
Please help me answer 6-10.

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