Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 42, Problem 7DQ
To determine
The policies of DVCs to promote economic development.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question 2
Suppose that the production function is Y = 10K5L5, the population growth rate is 15 percent
and the depreciation rate is 5 percent. What is the steady state level of k if the economy saves 30
percent?
O 400
O 225
100
O 1000
Question 3
Suppose that the production function is Y 10K SL5, the population growth rate is 15 percent
and the depreciation rate is 5 percent. What is the steady state level of y if the economy saves 30
percent?
250
350
150
O 450
In 38 low-income and emerging economies with GDP per capita below $25,000 tracked by
World Bank, the induced terms of trade movements accounted for
fluctuations on
average for all those countries.
O 20 percent of GDP
O 40 percent of GDP
O 30 percent of GDP
O 10 percent of GDP
- Suppose that work hours in New Zombie
are 200 in year 1, and productivity is $8
per hour worked. What is New Zombie's
real GDP? If work hours increase to 210
in year 2 and productivity rises to $10
per hour, what is New Zombie's rate of
economic growth? LO8.4
Chapter 42 Solutions
Economics (Irwin Economics)
Knowledge Booster
Similar questions
- Question I - Solow Model without Population or Technology Growth Consider the Solow growth model with no population growth and no technology growth, i.e., n = x = 0. Output is created by a Cobb-Douglas production function combining Labor, Lt, and capital, Kt, such that output Yt is given by Y₁ = A+ KL 1-α = = Recall that, without population growth, Lt Lo and assume that Lo 1. Furthermore, recall that, without technology growth, At Ao and assume that A0 = 1. The law of motion for capital per worker is = kt+1 = (1 − 6) kt + sAtko. (1) Assume that the savings rate is s = 0.2, the depreciation rate is 8 = 0.1, and that the capital share is a = 0.3. 1. Use equation (1) to solve for the steady state level of capital, kss, (hint, replace kss in that equation on both sides) kss = What is the steady state level of capital? (Replace the numbers in the expression) = 2. Suppose that this economy starts with ko 1. Does capital grow or fall over time? What is the maximum level of capital per capita…arrow_forwardOn the following scatter plots, the 1960 real per capita GDP is on the x-axis and the y-axis represents the average economic growth rate between 1960 and 2017. Which one shows the strongest evidence in favour of convergence? O 2.5 1960-2017 growth (percent) 2.0 1.5 1.0 3 2 5 5 Convergence 10 1960 GDP (constant dollars per person) Convergence 15 10 15 1960 GDP (constant dollars per person) 20 20arrow_forward"Consider the simple production model studied in class, but with different exponents. Suppose that the production function is Cobb-Douglas. The exponent on capital is 0.1 and the exponent on labor is 0.9. The data for this economy is A=10, KO=300 and the initial population is LO-30. We will assume that everyone in this country works so that population equals employment and per-person GDP equals per-worker GDP. Now suppose that the country receives foreign aid that is used to invest in infrastructure and electric vehicles. As a result, over the next few years, the economyos capital stock doubles to K1=600. Fortunately, no one is killed during the hurricane. In the Capital market the Demand will and the Supply will As a result, the rental rate will Shift to the Right; Remain unaffected; Increase Shift to the Left; Remain unaffected; Fall Shift to the Left; Shift to the Right; Fall Remain unaffected; Shift to the Right; Fallarrow_forward
- Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year? O 12% O 10% O 4% 2%arrow_forwardQUESTION 11 Using the Rule of 70, a country will roughly double its GDP in thirty-five years if its annual growth rate is However, if its annual growth rate is 5%, its GDP will roughly double in O 2 percent; 14 years O 7.5 percent; 10 years O 3.5 percent; 5 years O 2.5 percent; 25 yearsarrow_forwardExplain why U.S. potential GDP per worker per week is greater than that in Europe. What could induce Europeans to work the same hours as Americans and would that close the gap between potential GDP per worker in the two economies? U.S. potential GDP per worker per week is greater than that in Europe because O A. U.S. workers work fewer hours on average but they are more productive than Europeans O B. U.S. workers are more productive per hour of work and they work longer hours than Europeans C. the supply of labor in America is smaller than the supply of labor in Europe O D. the United States uses less capital but they use it more effectively Click to select your answer and then click Check Answer. 2. parts remaining Clear All MacBook Air 80 888 000 000 esc F1 F2 F3 F4 F5 F6 F7 F8 ! @ # $ 1 2 3 4 5 6 7 Q W E Y tab A S D F G H * 00 T Rarrow_forward
- 6. LO 2 Suppose that z, the marginal product of efficiency units of labour, increases in the endogenous growth model. What effects does this have on the rates of growth and the levels of human capital, consumption, and output? Explain your results.arrow_forwardIn a steady-state economy (i.e., the economy is at steady-state equilibrium) with 1% population growth rate, capital per worker is 86, the saving rate is 25 percent, and the depreciation rate is 11 percent. The level of output per worker is approximately O 47 35 195 O 41arrow_forwardAccording to economists, which of the following statements about international capital mobility is CORRECT? CO International resource mobility has had a negative effect upon world GDP. O International resource mobility has had no effect upon world GDP. O International resource mobility has had a positive effect upon world GDP. International resource mobility has had such a small effect upon world GDP that it is not worth measuringarrow_forward
- Asaparrow_forwardStatement 1: One of several World Trade Organization's primary missions is to promote improved living standards, job growth, and social and economic development and progress. Statement 2: The United Nations is usually considered as the lender of last resort for nations with troubled economies. Statement 3: World Bank is responsible for policing the fair international trade. O Statement 1 is correct but statements 2 and 3 are incorrect. O Statement 3 is correct but statements 1 and 2 are incorrect. © Statement 1 is incorrect but statements 2 and 3 are correct. O All statements are correct. O All statements are incorrect.arrow_forwardSelect one or more: O a. If Country C's GDP per capita rises from $2,500 to 7,500, and Country D's GDP per capita rises from $6,000 to 18,000, the ratio of GDP per capita between the two countries is unchanged. O b. If a country's GDP doubles every 50 years on a ratio scale graph against time it will rise at an increasing rate. O c. Country B is growing a higher percentage rate than Country A, but Country A is 5 times richer than Country B. On a linear scale graph against time the gap between the two lines must be narrowing. O d. Country E is growing at the same percentage rate as Country F, but Country E is 3 times richer than Country F. On a log scale graph against time the gap between the two lines will be constant.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax