EBK PRINCIPLES OF ECONOMICS
7th Edition
ISBN: 8220102958395
Author: Mankiw
Publisher: CENGAGE L
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Chapter 25, Problem 6QCMC
To determine
Malthusian theory of population.
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What did Malthus and Ricardo say about population growth?
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4. The Solow model says that population growth will not benefit a country in the long run but Michael Kremer disagrees. Explain both positions. Use a graph to explain Solow's argument.
5. The amount of education the typical person receives varies substantially among countries. Suppose you were to compare a country with a highly educated labor force and a country with a less educated labor force. Assume that education affects only the level of the efficiency of labor. Also assume that the countries are otherwise the same: They have the same saving rate, the same depreciation rate, the same population growth rate, and the same rate of technological progress. Both countries are described by the Solow model and are in their steady states. How would the following variables differ between the countries?
A. The rate of growth of total income
B. The level of income per worker
C. The real rental price of capital
D. The real wage
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- What did Thomas Malthus believe about population growth?arrow_forwardDescribe economic growth and how it is stimulated by education and training, capital accumulation, and technological improvements.arrow_forwardConsider an economy with a large agricultural sector. A long period of drought hits the country. Using the Malthusian growth model, discuss and explain how output, labor, consumption and population change as a result of the drought.arrow_forward
- According to 2019 data, Japan will continue to be the most aged country in the world until 2050. Japan's workforce is estimated to drop by 13 million by 2040. How will the economy be impacted? a. The impacts on labor productivity will exceed the impacts on economic growth. b. The impacts on economic growth will exceed the impacts on labor productivity. c. The impacts on economic growth and labor productivity will be equal/comparable. d. Neither labor productivity nor economic growth will be impacted.arrow_forwardLook around you and try to identify ten (10) objects/items that you may consider as evidences of Economic growth. On each item, explain why you consider it as proof of economic growth. Then try to define Economic Growth using those observations.arrow_forwardDiscuss the role of institutions in economic growth. What type of institutions are important for economic growth, and why?arrow_forward
- What are the meanings of ‘Economic growth’ and ‘Economic development’? What ‘Economic development’ means? Eradicate extreme hunger and poverty Achieve universal primary education Promote gender equality and empower women Reduce child mortality Improve maternal health Combat HIV/AIDS, malaria and other diseases Ensure environmental sustainability Develop a global partnership for development.arrow_forwardConsumers read positive economic news and then expect strong future economic growth.arrow_forwardMacmillan Learning Classify the statements about growth as true or false. If a statement is an opinion, leave it unplaced. True Governments can control growth rates with the appropriate policies. The industrial revolution brought an era of increased growth rates in the United States Convergence will not occur because of technology growth Answer Bank False Growth in productivity is closely correlated with wage growth Human capital is equivalent to the number of years of education Technology and human capital work againat each other Rich countries all grow faster than poor countries. Poor countries all grow faster than rich countries South Korea's growth can be traced to mainly human capital deepeningarrow_forward
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