Reference no: EM131443943
Question: Consider an economy with total population of 200. Let these 200 workers be equally divided between two groups: the rich and the poor. The poor have less human capital per person than the rich do.
1) Within each group, individuals do not differ by their skill level. Each individual in this economy accumulates human capital.
2) Each period, a person has one unit of time to split between work and human capital accumulation.
3) Each person devotes u=0.9 units of time to working in each period.
4) Suppose that b is equal to 14 and 12 for the rich and poor respectively.
5) In the economy, output is produced using the efficiency units of labor. That is output in period t is given by Y_t=zu(100R_t+100P_t), where Rt and Pt are the human capital of a rich and poor person, respectively, at the beginning of period t. Let z=1, R0=10 and P0=5.
a) What is average labour income in period 0?
b) What is economy-wide human capital growth rate between periods 0 and 1?
c) What is economy-wide human capital growth rate between periods 1 and 2? Explain why in this economy the human capital growth rate could be different across time.
|
Calculate the net operating income under variable costing
: ACCY211: Management Accounting Assignment. BioChem produces trail mix packaged for sale in convenience stores. At the beginning of April 2015, BioChem has no inventory of trail mix. Calculate the net operating income under variable costing
|
|
Construct an ethical analysis based on the application
: Brian McNally is a part-time faculty member at a mid-sized university located in Boston, Massachusetts. He has worked for the University in his current capacity for less than five years, but is well versed in the university's policies he has agree..
|
|
Law of equalising the weighted marginal means
: law of equalising the weighted marginal means
|
|
Two components of the tax agent services
: FNSBKG404A - List the two components of the tax agent services legislative package, including where you would find information about them - Describe the purpose of the TPB and list three (3) ways you can ensure you comply with the TPB registration r..
|
|
What is economy-wide human capital
: Consider an economy with total population of 200. Let these 200 workers be equally divided between two groups: the rich and the poor. The poor have less human capital per person than the rich do.
|
|
Customers wait on average before being processed
: Currently customers come in at the rate of 4 per hour and are processed at a similar rate. On average 8 cars are waiting to be processed, 4 needing routine repairs and 4 needing major repairs. People are served on a first come first serve basis. (..
|
|
Which condition has the highest frequency
: You analyzed a pre-intervention elementary school asthma database from the perspective of a public health informatician. This week, you will review the data set in more detail and discuss the tools informaticians use. For the asthma data summary, ..
|
|
Of the various sales and operations planning options
: Of the various sales and operations planning options, which do you think is the best approach? Why? Provide an example supporting your selection.
|
|
Conduct a non-intrusive breaching experiment
: Conduct a non-intrusive "breaching experiment", wherein you attempt to validate the existence of a particular norm. This may include singing on the bus, singing in an elevator, not talking to anyone for a day, or any other informally deviant activ..
|