The faster rate of growth of output per worker

Assignment Help Business Economics

Reference no: EM131246485

Suppose that two countries are exactly alike in every respect (meaning they have the same levels of capital, output, depreciation, etc.) except that the citizens of country A have a higher saving rate than the citizens of country B.

A. Which country will have the higher level of output per worker in the steady state? Illustrate graphically.

B. Which country will have the faster rate of growth of output per worker?

Reference no: EM131246485

Questions Cloud

Factors of production-capital and labor : Assume that Germany has only two factors of production, capital and labor, and two industries, capital-intensive car production and labor-intensive dairy production. Based on the Heckscher-Ohlin model, who gains and who loses in Germany if the wor..

Obvious reason is to raise tax revenues for the government : Governments impose taxes for several reasons. The most obvious reason is to raise tax revenues for the government. If the goal of a government is to raise the maximum tax revenues, should a per unit tax be imposed on an item that has a price elastici..

Calculate the price elasticity of demand for medium pizzas : When the price of pizza was $10.00 for a medium pizza, students at a college consumed 400 pizzas per week. When the price of pizza increased to $30.00 for a medium pizza, students at a college consumed 100 pizzas per week. Calculate the price elastic..

Find the arbitrage price : Consider the CRR model of stock price S with T periods and parameters d

The faster rate of growth of output per worker : Suppose that two countries are exactly alike in every respect (meaning they have the same levels of capital, output, depreciation, etc.) except that the citizens of country A have a higher saving rate than the citizens of country B. which country wil..

Should build a new theater downtown : Irving owns a chain of movie theaters. He is considering whether he should build a new theater downtown. The expected rate of return is 15 percent per year. He can borrow money at a 12 percent interest rate to finance the project. Should Irving pr..

Explain what is meant by the structure of water : Consider three (3) structures and functions of a cell then provide a 100 to 250 word explanation based on the following question: "How do varied membrane composition and the structural features of molecules in different cells contribute to membran..

The circular flow model depicts the exchange of money : The circular flow model depicts the exchange of money, products, and resources between households and businesses. It includes the factor and the products markets. A peak is usually followed by a correction phase in which contraction occurs, growth sl..

Draw an extensive-form representation of each game : Consider the normal-form games pictured here. Draw an extensive-form representation of each game. Can you think of other extensive forms that correspond to these normal-form games?

User Account

All Pages