PRIN.OF ECON.ACCESS CODE
2nd Edition
ISBN: 9780393691757
Author: Mateer
Publisher: NORTON
expand_more
expand_more
format_list_bulleted
Question
Chapter 25, Problem 1QFR
To determine
To explain:
The sources of
Expert Solution & Answer
Explanation of Solution
According to modern economic theory, basically human capital, natural resources and physical capital
are the main sources of economic growth for modern countries.Growth calculating measures calculate the donation of each of these three variables to the home economy.
Natural resources stock sourceinvolves land and the inputs born naturally inner or outer part of the land such as minerals and wood. These resources help to boost up agro-basedindustries and forest-based industries tourism, etc. These kinds of industriescontribute a lot to economic growth.
Physical capital stock sourceincludes buildings, machinery tools,means oftransformation, and computers. These capitalresourcesassist the production process of output, which ultimately contribute the economy to grow.
Human capitalresourcesare the people themselves who use all the otherresources. Human capital comprises of the labor volume mainly skilled labor, knowledge and skills, innovations etc which results in technological advancement in any economy. By making huge investment on education, training, research and development in order to increase human capital stock per capita
Economics Concept Introduction
Modern economic theory:
Modern economic theory is distinct from the other theories in the field of economic growth. Modern economic theory focuses mainly on human capital then natural resourcesand finallyphysicalcapital as the sources for economic growth in modern times.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Richard has just opened a new restaurant. Not being good at
deserts, he has contracted with Carla to provide pies. Carla’s costs are $10 per
pie, and she sells the pies to Richard for $25 each. Richard resells them for $50,
and he incurs no costs other than the $25 he pays Carla. Assume Carla’s costs go
up to $30 per pie. If courts always award expectation damages, which of the
following statements is most likely to be true?
Difference-in-Difference
In the beginning of 2001, North Dakota legalized fireworks. Suppose you are interested in
studying the effect of the legalizing of fireworks on the number of house fires in North
Dakota. Unlike North Dakota, South Dakota did not legalize fireworks and continued to ban
them. You decide to use a Difference-in-difference (DID) Model. The numbers of house fires
in each state at the end of 2000 and 2001 are as follows:
Number of house fires in Number of house fires in
Year
North Dakota
2000
2001
35
50
South Dakota
54
64
a. What is the change in the outcome for the treatment group between 2000 and 2001?
Show your working for full credit. (10 points)
b. Can we interpret the change in the outcome for the treatment group between 2000
and 2001 as the causal effect of legalizing fireworks on number of house fires?
Explain your answer. (10 points)
C.
Regression Discontinuity
Birth weight is used as a common sign for a newborn's health. In the United States, if a baby
has a birthweight below 1500 grams, the newborn is classified as having “very low birth
weight". Suppose you want to study the effect of having very low birth weight on the number
of hospital visits made before the baby's first birthday. You decide to use Regression
Discontinuity to answer this question. The graph below shows the RD model:
Number of hospital visits made before baby's first birthday
5
1400
1450
1500
1550
1600
Birthweight (in grams)
a. What is the running variable? (5 points)
b. What is the cutoff? (5 points)
T
What is the discontinuity in the graph and how do you interpret it? (10 points)
Chapter 25 Solutions
PRIN.OF ECON.ACCESS CODE
Knowledge Booster
Similar questions
- C. Regression Discontinuity Birth weight is used as a common sign for a newborn's health. In the United States, if a baby has a birthweight below 1500 grams, the newborn is classified as having “very low birth weight". Suppose you want to study the effect of having very low birth weight on the number of hospital visits made before the baby's first birthday. You decide to use Regression Discontinuity to answer this question. The graph below shows the RD model: Number of hospital visits made before baby's first birthday 5 1400 1450 1500 1550 1600 Birthweight (in grams) a. What is the running variable? (5 points) b. What is the cutoff? (5 points) T What is the discontinuity in the graph and how do you interpret it? (10 points)arrow_forwardExperiments Research suggests that if students use laptops in class, it can have some effect on student achievement. While laptop usage can help students take lecture notes faster, some argue that the laptops may be a source of distraction for the students. Suppose you are interested in looking at the effect of using laptops in class on the students' final exam scores out of 100. You decide to conduct a randomized control trial where you randomly assign some students at UIC to use a laptop in class and other to not use a laptop in class. (Assume that the classes are in person and not online) a. Which people are a part of the treatment group and which people are a part of the control group? (10 points) b. What regression will you run? Define the variables where required. (10 points)arrow_forwardExperiments Research suggests that if students use laptops in class, it can have some effect on student achievement. While laptop usage can help students take lecture notes faster, some argue that the laptops may be a source of distraction for the students. Suppose you are interested in looking at the effect of using laptops in class on the students' final exam scores out of 100. You decide to conduct a randomized control trial where you randomly assign some students at UIC to use a laptop in class and other to not use a laptop in class. (Assume that the classes are in person and not online) a. Which people are a part of the treatment group and which people are a part of the control group? (10 points) b. What regression will you run? Define the variables where required. (10 points)arrow_forward
- Dummy variables News reports claim that in the last year television watching has increased. You believe that rising unemployment during Covid may be one of the causes for this. Suppose you are interested in looking at the effect of being unemployed on the hours spent watching Netflix per day. You collect data on 10,000 people from Chicago who are between the age of 20 and 60. You define the dummy variable Unemployed which takes the value 1 for those who are unemployed and 0 for those who are employed. Equation 1: Hours spent watching Netflix₁ = ßo + B₁Unemployed; + ε¿ Following is the output for equation 1: reg hours spent_watching_netflix unemployed Source SS df MS Number of obs 10,000 F(1, 9998) = 14314.03 Model Residual 3539.70065 2472.39364 9,998 1 3539.70065 .247288822 Prob F R-squared == 0.0000 = 0.5888 Total 6012.09429 9,999 . 601269556 Adj R-squared Root MSE = 0.5887 .49728 hours spen~x Coef. Std. Err. t P>|t| [95% Conf. Interval] unemployed cons 1.189908 .0099456 119.64…arrow_forwardDummy variables News reports claim that in the last year television watching has increased. You believe that rising unemployment during Covid may be one of the causes for this. Suppose you are interested in looking at the effect of being unemployed on the hours spent watching Netflix per day. You collect data on 10,000 people from Chicago who are between the age of 20 and 60. You define the dummy variable Unemployed which takes the value 1 for those who are unemployed and 0 for those who are employed. Equation 1: Hours spent watching Netflix₁ = ßo + B₁Unemployed; + ε¿ Following is the output for equation 1: reg hours spent_watching_netflix unemployed Source SS df MS Number of obs 10,000 F(1, 9998) = 14314.03 Model Residual 3539.70065 2472.39364 9,998 1 3539.70065 .247288822 Prob F R-squared == 0.0000 = 0.5888 Total 6012.09429 9,999 . 601269556 Adj R-squared Root MSE = 0.5887 .49728 hours spen~x Coef. Std. Err. t P>|t| [95% Conf. Interval] unemployed cons 1.189908 .0099456 119.64…arrow_forward17. The South African government's distributive stance is clear given its prioritisation of social spending, which includes grants and subsidised goods. Discuss the advantages and disadvantages of an in-kind subsidy versus a cash grant. Use a graphical illustration to support your arguments. [15] 18. Redistributive expenditure can take the form of direct cash transfers (grants) and/or in-kind subsidies. With references to the graphs below, discuss the merits of these two transfer types in the presence and absence of a positive externality. [14] 19. Expenditure on education and healthcare have, by far, the biggest redistributive effect in South Africa' by one estimate dropping the Gini-coefficient by 10 percentage points. Discuss the South African government's performance in health and education provision by evaluating both the outputs and outcomes in these areas of service delivery. [15] 20. Define the following concepts and provide an example in each case: tax rate structure, general…arrow_forward
- Summarise the case for government intervention in the education marketarrow_forwardShould Maureen question the family about the history of the home? Can Maureen access public records for proof of repairs?arrow_forward3. Distinguish between a direct democracy and a representative democracy. Use appropriate examples to support your answers. [4] 4. Explain the distinction between outputs and outcomes in social service delivery [2] 5. A R1000 tax payable by all adults could be viewed as both a proportional tax and a regressive tax. Do you agree? Explain. [4] 6. Briefly explain the displacement effect in Peacock and Wiseman's model of government expenditure growth and provide a relevant example of it in the South African context. [5] 7. Explain how unbalanced productivity growth may affect government expenditure and briefly comment on its relevance to South Africa. [5] 8. South Africa has recently proposed an increase in its value-added tax rate to 15%, sparking much controversy. Why is it argued that value-added tax is inequitable and what can be done to correct the inequity? [5] 9. Briefly explain the difference between access to education and the quality of education, and why we should care about the…arrow_forward
- 20. Factors 01 pro B. the technological innovations available to companies. A. the laws that regulate manufacturers. C. the resources used to create output D. the waste left over after goods are produced. 21. Table 1.1 shows the tradeoff between different combinations of missile production and home construction, ceteris paribus. Complete the table by calculating the required opportunity costs for both missiles and houses. Then answer the indicated question(s). Combination Number of houses Opportunity cost of houses in Number of missiles terms of missiles J 0 4 K 10,000 3 L 17,000 2 1 M 21,000 0 N 23,000 Opportunity cost of missiles in terms of houses Tutorials-Principles of Economics m health carearrow_forwardIn a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______ Group of answer choices Raises the interest rate so that net exports must fall to maintain equilibrium in the goods market. Cannot change the interest rate so that net exports must fall to maintain equilibrium in the goods market. Cannot change the interest rate so income must rise to maintain equilibrium in the money market Raises the interest rate, so that income must rise to maintain equilibrium in the money market.arrow_forwardSuppose a country with a fixed exchange rate decides to implement a devaluation of its currency and commits to maintaining the new fixed parity. This implies (A) ______________ in the demand for its goods and a monetary (B) _______________. Group of answer choices (A) expansion ; (B) contraction (A) contraction ; (B) expansion (A) expansion ; (B) expansion (A) contraction ; (B) contractionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning