Modern Principles: Macroeconomics 4e & Launchpad For Modern Principles Of Macroeconomics (six-month Access)
Modern Principles: Macroeconomics 4e & Launchpad For Modern Principles Of Macroeconomics (six-month Access)
4th Edition
ISBN: 9781319200336
Author: Tyler Cowen, Alex Tabarrok
Publisher: Worth Publishers
Question
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Chapter 2, Problem 1FT

Subpart (a):

To determine

Which country has more knowledge.

Subpart (a):

Expert Solution
Check Mark

Explanation of Solution

Drudgia has more knowledge. This is because in Drudgia, people are specialised in different fields of knowledge. This division of knowledge helps them to increase their efficiency and gain more knowledge.

Economics Concept Introduction

Concept Introduction:

Division of knowledge: The division of knowledge is defined as specialisation of knowledge that increases the productivity.

Subpart (b):

To determine

Which country has more knowledge.

Subpart (b):

Expert Solution
Check Mark

Explanation of Solution

Differentia has more knowledge. This is because in Differentia, each individual knows distinct facts and hence the total number of facts known would be as high as one trillion. While in Xeroxia, all the individuals know the same facts and the total number of facts known is only one million. The increase in knowledge in Differentia is due to the division of knowledge.

Economics Concept Introduction

Concept Introduction:

Division of knowledge: The division of knowledge is defined as specialisation of knowledge that increases the productivity.

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