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Countries X and Y differ in population growth rates and rates of investment.Country X: investment (or savings) is 20% of GDP, population grows at 0% per yearCountry Y: investment (savings) is 5% of GDP, population grows at 4% per year.
Both countries have the same rate of depreciation (5%). Use the Solow model to calculate the ratio of their steady state levels of income per capita, assuming ? =1/3.
a) Verbally, interpret your answer.
b) How would your result change if ? =1/2?
Use Human Capital theory and describe the relationship between skill and unemployment. Naturally, economists and the public at big usually think of skill level having having an inverse relationship with unemployment.
Think a competitive industry consisting of one hundred identical firms each with the following cost schedule,
How much should this firm produce now, and what price should they charge? Explain, calculating total profit or loss earned at this quantity.
You should comment on the success and/or failure of its approach and implementation as stated in the text and posted readings and how it may have modified its organization, supply or marketing over time given changes in its markets
Draw two hypothetical iso-cost curves: one with annual leasing cost per vehicle being relatively inexpensive to the annual salary per mechanics, and another with annual leasing cost per vehicle being more expensive to the annual salary of mechanic..
Using ideas of consumer and producer surplus analyse this claim. Is there a case for price controls on housing?
Determine which of the following is most likely to indicate statistically significant regression coefficient? Assume the price elasticity of the supply of cheese is 0.80. If the price of cheese rises by .20 percent,
In developing a vaccine for a dangerous new strain of flu virus a pharmaceutical company incurs a very high fixed cost. The marginal cost of delivering the vaccine to patients, however, is negligible (consider it equal to zero). The pharmaceutical..
part-1a software company decided to build a larger factory at a cost of 50 million that would be operational for 5
Consumer Sovereignty & Dollar Votes guide the market system in dealing with which fundamental question a) What will be produced b) How is the output to be produced c) How can the system accomodate change d) Why is to recieve the output
1. if the total cost tc assembling and processing milk is given astc a av2 bn2 - cvn where v is the size and n is
Suppose that a country's central bank has price stability as the primary objective. Describe how the central bank conducts monetary policy in times of rising energy prices
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