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There is strong empirical evidence to support absolute convergence across the US states (when each state is viewed as a separate economy) and there is somewhat weaker evidence to support absolute convergence across Europe. On the other hand, there is no evidence to support absolute convergence across the world as a whole. Use the Solow model to explain these observations.
A perfectly competitive rm produces output q with capital K and labor L according to the production function: q = f(K; L) = 4K 1 4L 1 4 The price of labor is w = 4, and the price of capital is r = 4. Prove that this production function has decreasing..
Are you concerned that automation may increase unemployment or underemployment in the United States and around the world.
Suppose there are two candidates disputing election in a linear city defined on the interval [0, 1]. There is a continuum of voters uniformly distributed on the interval [0, 1]. Voters closer to the point 0 prefer more conservative candidates, and vo..
Assume an economy with a total population equal to 1. Individuals can only be employed or unemployed. Suppose this economy’s steady-state unemployment rate is 5%. We know that workers can lose their jobs and become unemployed with probability 4%. Wha..
Illustrate who benefits more from a transaction of the good or service, the buyer or the seller. Generally speaking, why do people enter into trade.
You are an aide for the Senate Banking Committee Chairman. He comes to you with a bill that proposes setting limits on what ATM owners can charge non account holders, over and above what banks charge their own customers. The Senator asks you to look ..
Describe the two possible effects that an increase in the wage rate can have on labor supply. Which effect do you expect to dominate under normal circumstances?
Suppose there is a policy debate regarding the United States’ imposing trade restrictions on imported ball bearings: A senator from a state with several ball-bearing factories explains that it is necessary to impose trade restrictions, such as a tari..
Farmers in certain areas of U.S. CAN GROW EITHER WHEAT OR CORN. IF THE price of corn increases the: The percentage change in profit that results from a 1% change in units sold equals: A monopolist maximizes profits by producing a level of output wher..
Which of the following are the ideal conditions for a laissez-faire economy?
Which economic decision makers conclude the provider of labor. Illustrate what is their goal also illustrate what decision criteria do they utilize in trying to reach which goal.
In the last two decades, the United States has been subject to very large increases in the immigration of undocumented workers from Mexico, most of them low-skilled, and the government has considered ways to reduce the flow. What effect would it have..
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