In the Romer Model (1990), if the level of technological knowledge is1000, productivity parameter in the R&D sector is 0.0001, and wage paidto human capital is 50, what is the price of a new design from the R&Dactivities? (Show calculation steps.)In the Romer Model (1990), suppose the productivity parameter in theR&D sector is 0.0001 and the stock of human capital in the economy is5000, of which 4000 is allocated to the manufacturing of the finalgoods. In the final goods production sector, output elasticity with respectto labor is 0.3 and output elasticity with respect to human capital is0.5. Find the equilibrium interest rate. (Show calculation steps.)

Let us summarize the final responses for the two portions using the Romer Model (1990):Part 1: Cost…

Answered: In the Romer Model (1990), if the level…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider two competitive economies that have the same quantities of labor (L = 400) and capital (K = 400), and the same technology (A = 100). The economies of the countries are described by the following Cobb–Douglas production functions: North Economy: Y = A L.3K.7 South Economy: Y = A L.7K.3 In which economy is the real wage larger? Explain.
The concept of diminishing returns to a factor of production applies not only to capital but to labor as well. Prior to the Industrial Revolution, there was no sustained growth in living standards. Draw a graph to illustrate the relationship between population and output produced, where population is measured on the horizontal axis, both pre- and post-Industrial Revolution. 1.) Using the 3-point curve drawing tool, draw the production curve showing diminishing returns to labor. Label your curve 'Pre.' 2.) Using the 3-point curve drawing tool, draw the production curve after the Industrial Revolution. Label your curve 'Post. Carefully follow the instructions above and only draw the required objects. a
Economic Growth Akila and her family are the only inhabitants of a small oasis in the middle of the desert. They grow various kinds of trees, which provide them with everything they need. Akila has built an irrigation system that improves the productivity of the land. Production makes use of three factors: capital K (the irrigation system), labour N (the work done by Akila and her family) and land L (the oasis and the desert around it). The production function is given by F(K,N,L)= K*N*L*. Labour supply is fixed at N=1 and the family owns 64 units of land, L=64. The irrigation system is in constant need of repair; about 10% needs to be rebuilt every year to keep it in a good condition, i.e. K' = K – K +1, where I is investment in the capital stock. 1. Show that for a saving rate s, the law of motion for the capital stock can be written in per-capita terms as k'=k-k+s2vk . 2. Find the steady-state level of the capital stock k, output y and consumption e as functions of s. 3. Currently,…
My question is how to complete the last part talking about the 1200 bushels of corn and 1000 tons of steel.
A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result, real GDP per worker (Y/L) grew from $20,000 to $25,000. If the economy increases its capital per hour worked by another $10,000 to $60,000, but there is no change in technology, by how much more and in what direction will output per worker change? Answer neatly with proper explanation of it
Assume the production function takes the general form: Y=Z*F (K,L,A)where all marginal products are positive.Which 3 of the following statements are correct?a. If A is fixed, then population growth acts as a drag on growth of output per person.b. If A is fixed, then population growth acts as a drag on growth, and so Malthus was correct that populationgrowth will always reverse the impact of technological improvements.c. Both rises in z and rises in K/L (capital intensity) will boost output per worker.d. Growth in output per worker can occur due to rises in z (technology) or rises in K/L (capital intensity), orboth.
In the Romer model presented in class, a firm can allocate labor between production and research and development (technology). What happens if an economy allocates all of its labor to production and none to technology? it will reduce output it will slightly reduce the number of ideas it generates it will increase the number of ideas it generates it will not generate any ideas None of these answers are correct.
Suppose there is a simple hypothetical economy in which the only industry is weaving. In the weaving field, productivity-the amount of goods and services a worker can produce per hour-is measured by the number of garments one weaver makes per hour. In the following table, select the appropriate productivity determinant that represents each example. Human Capital per Worker Natural Resources per Worker Examples A special technique that workers can use to create stronger textiles The looms used to weave the textiles The accumulated weaving experience of the workforce The grasslands supporting the sheep whose wool is used for weaving O Physical Capital per Worker O Technological Knowledge O O
We live in a world where computers and other items of technology seem to get ever cheaper to produce. Such technology is important in the production of a vast range of consumer goods. We wish to analyse the impact of this phenomenon on two key pieces of economic data. The main impact of the decreasing cost of technology is that (select from consumption/investment/government spending/exports/imports/economy-wide production costs/wage costs) would (Select increase/decrease) This would shift the (Select one from the picture attached) which (Select: Increse or decreases the price level) and (Select: increases or decreases GDP) Suppose that the economy is now away from long run equilibrium (GDP is above Yf). The way that the economy adjusts back to equilibrium is that (Select: interest rates/the exchange rate/factor prices such as wages/governement spending) (Select: Increases/decreases). This shifts the (Select one from the picture attached)
Please correct answer and don't use hand rating
0.5 0.5 Given a production function: Y = AK N If output grows at 5%, capital grows at 2% and the number of workers grows at 4%, then technology (or total factor productivity) grows at % ? (Answer in integer only, no decimal place.) Your Answer: Answer Given a production function: Y = AK0.5 N0.5. If output grows at 5%, capital grows at 2% and the number of workers grows at 4%, then technology (or total factor productivity) grows at %? (Answer in integer only, no decimal place.) Your Answer: Answer
How would I answer this?

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