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Suppose you are studying a country whose value of output per worker y = 40, capital per worker k = 189, and human capital per worker h = 2. Further assume the share of income paid to capital in this country =0.1. What is the value of for this country? Enter your answer rounded to one decimal place.
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- Which of the following statements about country wealth is true? Everyone in a high real GDP per capita country like Belgium or Qatar is wealthy China and India have a higher real GDP per capita because of their large populations ) There is no connection between a country's real GDP per capita and wealth The United States has the highest real GDP per capital of any country with a population above 50 million Countries with smaller populations always have higher real GDP per capitaConsider the economies of Sporon and Gobbledigook, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 20 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 2015 and 2035. Sporon Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2015 11 30 1,800 2035 16 30 2,160 Gobbledigook Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2015 8 30 900 2035 13 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Gobbledigook. From 2015 to 2035, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker…Question 1 The Mankiw-Romer-Weil (1992) model. Assume the production function is given by Y = KaH³(AL)¹-a-B where a and B are constants between zero and one whose sum is also between zero and one. Physical capital is accumulated as K = SKY dk where SK is the constant share of output invested in physical capital. And human capital is accumulated just like physical capital: Н = SHY dH where SH is the constant share of output invested in human capital. The labor force grows at rate n, and the technological progress occurs at rate g. Solve the model for the path of output per worker y=Y/L along the balanced growth path as a function of SK SH, n, g, d, a and B. (Hint: Define state variables such as y/A, h/A, and k/A.)
- What is the implication of the diminishing returns to physical capital for economic growth of different countries over time? (Hint: think about what is predicted to happen to the gap between rich and poor countries).1. (This is problem 3, page 238 of the textbook.) For a particular economy, the following capital input K and labor input N were reported in four different years: Year 1 234 4 K 200 250 250 300 N 1000 1000 1250 1200 The production function in this economy is Y=K0.3 Nº.7, where Y is total output. a. Find total output, the capital-labor ratio, and output per worker in each year. Compare year 1 with year 3 and year 2 with year 4. Can this production function be written in per-worker form? If so, write algebraically the per- worker form of the production function. b. Repeat Part (a) but assume now that the production function is Y = Kº.3 Nº.8Consider the economies of Hermes and Tralfamadore, 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 2015 and 2065. Hermes Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2015 11 30 1,800 2065 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2015 30 900 2065 13 30 1.620
- Determine which of the following statement about economic growth and labour productivity is true or false. Statement In attempt to reduce unermployment and to discourage layoffs, the government requires firms to continue paying the salary of any worker who loses their job until they find a new one. Therefore, firms will have little incentive to lay off False their workers and help to promote growth in labour productivity. The government should not channel research and development funds to private industry because it will not pay off to the economy as a whole and only benefits the owners of these corporations. [ Select] NextPlease correct answer and don't use hand ratingCapital per person in France is about 81 percent of the U.S. level and per capita income is about 79 percent of the U.S. level. Given that per capita income y = Ak0.3, calculate the level of total factor productivity (A), relative to the U.S. level, that would be needed for France to match the U.S. level of per capita income. Round your answer to 2 decimal places.
- Why was Land Use Reform a successful policy in several Asian countries in promoting economic growth? By making public land available for farming, peasant farmers could rotate crops more easily. By making all farmland publicly owned, farmers could collectively work to maximize their yields. O By reallocating farmland for use in manufacturing, industrialization was incentivized. O By taking farmland away from landlords and giving it to peasant farmers, those farmers had an incentive to improve their yields.Question 1 Suppose there are but two countries, namely A and B. Each country is indexed by "" for j = A and B. Both countries have no govermment, i.e. Gj = T, = 0. Suppose the technology of both countries are linear production in labor hours. That is, y, = z,N, where Ny is the number of working hours in country j and z, is the level of technology in country j. Suppose that ZA = 2 > Z, = 1 and preferences of consumers in both countries are identical a) Assuming a fixed time endowment in both countries to be equal to 1 unit, construct the PPF of each conntry. Putting both PPFS in the same figure and locate all important points. Comments on the differences and similarities between the two PPFS. b) Determine the competitive equilibrium in both countries. Are there any wage differentials in the equilibrium? Which one of the countries is supposed to experience a higher wage? Why? How about the allocation in both countries? e) Redo the problem "a" and "b" above, but instead assume that the…Consider a small island country whose only industry is printing. The following table shows information about the small economy in two different years. Complete the table by calculating physical capital per worker as well as labour productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labour. Labour Hours Output Labour Productivity Physical Capital (Printing presses) Labour Force Physical Capital per Worker (Workers) (Printing presses) Year (Hours) (Books) (Books per hour of labour) 2026 40 20 1,000 6,000 2027 120 40 1,400 12,600 Based on your calculations, in physical capital per worker from 2026 to 2027 is associated with in labour productivity from 2026 to 20 an increase Suppose you're in charge of a decrease conomic policy for this small island country. Which of the following policies would lead to greater productivity in the printing…
