Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 18.4, Problem 4QQ
To determine
Thedeterminants of income of owner of land and capital.
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If Juan is 40 years old, landless, but he is directly tilling Don Pedro’s land, can he be a CARP beneficiary? *
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Chapter 18 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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- QUESTION 23 Saying a firm will continue investing up to the point at which expected rate of return is equal to the interest rate. O the marginal product of capital is equal to the marginal product of labor is equivalent to saying that a firm will keep investing in new capital up to the point where the O the marginal revenue product of capital is equal to the price of capital O the interest rate is equal to the inflation rate O the return on capital is equal to depreciationarrow_forwardAssume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70arrow_forwardWhat is an aggregate production function?arrow_forward
- Why dues productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?arrow_forward“Total economic value can be determined by active-use value (such as raw timbervalue to use timber as firewood or furniture) and passive use value (such as tree as anoxygen producing system)”. What do you understand from the above statement??Explain in detail.arrow_forward18arrow_forward
- Suppose the government runs fewer budget deficit and there is a decrease in the average household income. Then, O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would increase. O The new EQ quantity of loanable funds would decrease, but the new EQ interest rate would be indeterminate. O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would decrease. The new EQ quantity of loanable funds would be indeterminate, but the new EQ interest rate would increase. The new EQ quantity of loanable funds would increase, but the new EQ interest rate would be indeterminate.arrow_forward3 Jlgw ?Provide 2 situations why diminishing return could happen in Albaarrow_forwardNonearrow_forward
- need help on both pleasearrow_forwarddiscussing factors of production. What is the difference between the rates of return for a renewable and nonrenewable resource? How do the rates of return on capital and land differ between a renewable and nonrenewable resource? How does the growing demand for food, fuel, and export affect the market for land?arrow_forwardDefine the term the concept of return on investment?arrow_forward
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