Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 9, Problem 2PA
To determine
The impact of tariff on automobiles.
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Principles of Macroeconomics (MindTap Course List)
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- Explain the following terms and provide an example for each term: • Corruption • Fraud • Briberyarrow_forwardIn what ways could you show the attractiveness of a country in the form of videos/campaigns?arrow_forwardWith the VBS scenario in mind, debate with your own words the view that stakeholders are the primary reason why business ethics must be implemented.arrow_forward
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- 1.2. Fourie (2018:211) suggests that Ubuntu emphasises the willingness to share and participate in a community. However, it does not privilege the community over the dignity and life of the individual. With the above in mind, discuss how the implementation of the National Health Insurance (NHI) is a way to uphold the concept of Ubuntu.arrow_forwardWhat are the 15 things/places/foods/culture or any strategies that could showcase the attractiveness of the Philippines to foreign investors? Use factual information in each strategies and discuss.arrow_forwardTwo firms are competing in a Cournot duopoly. Both firms have the same constant marginal cost. The market demand is linear. Suppose the constant marginal cost of firm 2 is increasing. Which of the following statements are correct? [There may be more than one correct statement.] The quantity of firm 1 and the quantity of firm 2 both go up. The quantity of firm 1 goes up and the quantity of firm 2 goes down. The market price goes down. The market price goes up. The quantity of firm 1 and the quantity of firm 2 go down. The quantity of firm 1 goes down and the quantity of firm 2 goes up. The market price stays the same.arrow_forward
- evaluate the impact of government interventions, such as antitrust regulations, price controls, or subsidies, on various market structures. Select a specific industry and examine how these interventions have influenced competition, consumer welfare, and economic efficiency. Provide the pros and cons of government intervention.arrow_forwardConsider an economy that exhibits both population growth (L grows at rate n) and technological progress (A grows at rate a) described by the production function, Y = F(K, AL) = Ka (AL)¹-α Here K is capital and Y is output. (a) Show that this production function exhibits constant returns to scale. [2 marks] (b) What is the per-effective-worker production function, y = f(k), (where y = Y/AL k K/AL)? (Show your working.) [2 marks] (c) Find expressions for the steady-state capital-output ratio, capital stock per effective worker, and output per effective worker, as a function of the saving rate (s), the depreciation rate (8), the population growth rate (n), the rate of technological progress (a), and the coefficient a. (You may assume the condition that capital per effective worker evolves according to Ak = sf (k) - (a+n+8)k.) [5 marks] (d) Show that at the Golden Rule steady state the saving rate for this economy is equal to the parameter a. [6 marks]arrow_forwardA firm faces the following production function, Y = AKα L¹-a (1) Here Y is output, K is capital, L is fixed labour, and A is a measure of technology. The firm uses an optimal amount of capital determined by the condition, MPK = r +8 (2) Where MPK is the marginal productivity of capital, r is the real interest rate, and ♪ is the depreciation rate. (a) Using equations (1) and (2) find an expression for K*, the optimal amount of capital the firm should use. [3 marks] (b) Referring to your result from part (a), comment on what happens to K* when each of the following variables change (holding other variables constant), (i) The measure of technology (A) falls (ii) The depreciation rate (8) increases (iii) The real interest rate (r) increases [2 marks] [2 marks] [2 marks] [Hint: For each of parts (i)-(iii) you are being asked to comment on what happens to K* if just the variable mentioned in the question part changes. Your answer should state whether K* increases, decreases, or stays the…arrow_forward
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