Search & Filtering
Consider a Solow growth model with the following production function:
(1) If A = 2, L = 20,000, and K = 400, what is output?
(2) Does this production function have constant returns to scale? Explain.
(3) Suppose the labor force grows by 5% so that it is now 21,000. By how
much does output increase?
(4) Starting again with the conditions in part (1), what if capital increases by
5%, so that it is now 420. By how much does output increase?
1) Consider a country with an ICOR of 8.0 in which GDP rises by 4% per annum to prevent a decline in per-capita income. This requires a saving rate of
2) For an economy’s output function, where y=(Y/L) and k = (K/L), what statement best describes it?
3) In a steady-state economy with no population growth, capital per worker is 80, the saving rate is 25 percent, and the depreciation rate is 12.5 percent. The level of output per worker is ________
4) What is true regarding the situation when k = k*?
5) What is the condition required for k = k* to become a golden rule steady state equilibrium level of k?
1) If the economy’s output function is given as , where y=(Y/L) and k = (K/L), the average productivity of capital diminishes as k increases.
2) Other things the same, in the Solow model in the steady state, a higher rate of population growth leads to an increase in the level of output per worker.
3) While capital dilution lowers the value of k, capital widening raises the value of k in the Solow model.
4) In the Solow model with technological progress, the growth rate of GDP is the same as the population growth rate and the savings rate.
5) If the production function is given as Y = L∙K, then it follows constant returns to scale.
6) When the output stays the same after the use of each input has been doubled, then the economy’s production function follows a constant returns to scale.
Suppose the perfectly competitive firm’s cost function is TC=Q3-21Q2+600Q+1820 and its AR=600. (2Pts)
a. What is the profit maximization level of output?
b. What is the maximum of profit or minimum of loss?
Use the equations to draw the market demand and supply curves and determine the
equilibrium quantity and equilibrium for milk
QUESTION 1.
How do business organizations survive for 100+ years? Obviously, they’ve seen a lot of historical events come and go. Choose one of these companies and research its history: Coca-Cola, Procter & Gamble, Avon, or General Electric. How has it changed over the years? From your research on this company, what did you learn that could help you be a better manager?
Question 2.
Juan Hernandez is a successful business owner. His landscaping business is growing, and a few months ago he decided to bring in somebody to manage his office operations since he had little time to keep on top of that activity. However, this individual can’t seem to make a decision without agonizing about it over and over and on and on. What could Juan do to help this person become a better decision maker?
An economy following a flexible exchange rate regime is in its long run equilibrium while suffering from a trade deficit would a reduction in government spending be helpful in eliminating the trade deficit explain indicating all co movements both in the short run and long run assuminh that ricardian equivalence holds
Suppose that declining resource supplies reduce potential output in
each period by 4%. What kind of monetary policy would be needed to
maintain a zero rate of inflation at full employment?
Suppose you are a monopolist and find that the demand elasticity of your
product is different in two markets. What would be your pricing strategy?
Cold Drink and pizza are complements because they are often enjoyed together. When the price of Cold Drink rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the
price in the market for pizza
