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Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is sustainable. That is, if the growth rate of capital is either higher or lower than this steady-state value, then it must eventually change, even if nothing else in the economy changes. Calculate this steady-state growth rate of capital, and explain why it alone is a sustainable rate. [Hint: Use the fact that the growth rates of output and capital per worker are 43% higher than the growth rate of productivity.]
Calculate the amount of tax collections that the government will require in period two. If so, compute it; if not, explain why not.
Select a region and choose a trading bloc (NAFTA, EU, ASEAN, etc.) within that region. In a single paper write two 350- to 500-word articles, one article in favor of regional integration and another article against regional integration. Describe the ..
Which region appears to have a comparative advantage in producing cut flowers: Colombia or California? Explain. How have U.S. consumers of cut flowers been affected by the cutback in Colombian imports?
After 1, 2, and 3 years, it will pay a dividend of $5.You expect to sell the stock after 3 years for $120. Is XYZ a good investment. Support your answer with Calculations.
In terms of a firms MRP of labor, explain why the firm will only hire the next worker if that worker can make the firm money.
It has been estimated that the price elasticity for cigarettes is 0.164. Assuming there are currently no taxes on cigarettes, to reduce cigarette purchases 5%, government would need to tax cigarettes enough t.:
What is the profit-maximizing rate of output for the firm?( b ) How much profit does the firm earn at that rate of output?
Draw the market supply and market demand in one graph. Next to it, draw the situation of one firm, with the average total cost, the marginal cost, and the price (which under perfect competition is the marginal revenue).
Specify the main economic (not political) drawback of economic integrations among nations? Explain (do so in no more than 40 words).
q.firm 1 is the incumbent in a market lasting two periods with inverse demand curve p74 -9q. its first-period costs are
what is lowest price that will induce firms to supply output. Suppose PI = $40, F = 50 and demand function is Qd = 700! 6P, n if government sets a price of $50 what will be result.
Some economists suggest that the increase in e-commerce within the business-to-business (B2B) market will lead to greater competition and more goods and services becoming commodities, meaning they will compete solely on price. How do you think thi..
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