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. O 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% O 90% O 100%

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. O 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% O 90% O 100%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Production possibilities (alternatives) A B Capital goods Consumer goods 4 3 2 of 12 14 15 Refer to the above tabl A total output of 3 units of capital goods and 4 units of consumer goods: Select one: O a. will result in the maximum rate of growth available to this economy. O b. is irrelevant because the economy is capable of producing a larger total output. Oc. is unobtainable in this economy. O d. would involve an inefficient use of the economy's scarce resources.
I need help with the questions and please prove justification.
1,
Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 1, total population in an economy is equal to 1, depreciation rate is 5 percent and saving rate is 10 percent. Then the steady-state level of capital is about: 1.3 O b. 0.3 О с. 0.8 Od. 2.8 O e. 1.6
16 True or False? The key difference between the Solow and production/expenditure models of the economy is that the Solow model endogenizes the saving rate.