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In the exogenous growth model what are the effects on the steady-state consumption and capital-labor ratio of an increase in the savings rate and of an increase in the population growth rate? Give a graphical illustration of each effect on the steady state.
Assume there is one good in the economy X, and utility is given by: Ua=Xa Ub=Xb The objective is to maximize the welfare of the social given that only 10 units of X exist in the economy. (i.e Xa+Xb=10) Suppose the utilitarian social welfare functi..
Why does faster technological progress lead to more rapid accumulation of human capital?
Consider a standard six sided die, numbered 1 through 6 on each face. The probability of rolling each number is 1/6. a.) Let X equal the sum of the values from two independent rolls, then E[X] is b.) What is the variance of one throw of the die
Which principle of taxation stresses vertical equity? Explain.
where K represents capital equipment and L is labor. Your company owns 4 units of capital equipment and does not have the flexibility needed to acquire additional equipment (that is, capital is fixed at K = 4). Your company is currently employing ..
Explain the CLRM assumptions discussed in class and why is OLS appropriate when all these assumptions hold - What effects does education have on the wage, according to the estimates obtained?
suppose that a perfectly competitive firm faces a market price 10 per unit and at this price the upward-sloping portion
the table shows the miaximum amount of money you would be willing to pay for increasing numbers of chicken pieces at
a large induced-draft fan is needed for an upgraded industrial process. the motor to drive this fan is rated at 100
what will happen to equilibrium quantity od peanut butter traded in the market after the 30% increase in the price of peanut butter? stay the same, increase, decrease, or not enough information to tell what will be the expected change in the quant..
On a diagram, draw the marginal cost curves for the two factories, the average and marginal revenue curves, and the total marginal cost curve (i.e., the marginal cost of producing Q = Q1 + Q2). Indicate the profit-maximizing output for each factor..
Mike buys a corporate bond with a face value of $1000 for $900. The bond matures in 10 years and pays a coupon interest rate of 6%. Interest is paid every quarter. A). Determine the effective rate of return if Mike holds the bond maturity.
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