Suppose that the per hour worked form of the production function for an economy is given by y = 10k 0.3 depreciation rate is 11%, the saving rate is 21%, and the growth rate of labor hours is 7%. The The steady-state capital-labor ratio for this economy is (Round your response to two decimal places.)
Q: Consider the system of equations: pi = β0 + β0qi + β2ti + β3zi + ui qi = α0 + α1pi + α2ki + ԑi…
A: A system of equations is a set of or more equations involving an identical set of variables. These…
Q: := 1:36 MicrolnternationalProject 5G 49 Done International Aspect of Project Homework Below is an…
A: 1. The American solar farm subsidies, while promoting clean energy development in the US, have had a…
Q: 15 10 5 0 0 10 20 30 40 50 60 70 80 90 100 Quantity Consider the figure shown. What is the consumer…
A: Consumer surplus(CS) measures the benefits consumers receive from purchasing a good or service. It…
Q: 42 4- K L M 3 6 9 12 15 18 21 24 27 30 33 36 39 Refer to Figure 8-8. One effect of the tax is to A.…
A: Taxes(t) impact the market by altering the behavior of consumers and producers. When taxes(t) are…
Q: don't use chatgpt answer i will 10 upvotes. Which of the following is an outcome of sterilization?…
A: A central bank may use sterilization as a tool of monetary action to try and reduce the impact of…
Q: 1) Explain your reasoning- Consider a vote being taken by a group of friends A, B and C They are…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Constructing an equilibrium Households live two periods and have prefernces U(c1)+βU(c2) where…
A: Given,In two periods, preference,
Q: Quantity of Output Total Cost Product Price 0 $ 250 $ 500 1 260 300 2 290 250 3 350 200 4 480 150 5…
A: Price discrimination is a practice of charging different prices for same good to different…
Q: Required information The Briggs and Stratton Commercial Division designs and manufacturers small…
A: Salvage value refers to the estimated residual worth or value of an asset at the end of its useful…
Q: if the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80…
A: The price elasticity of demand for a product is 2.5.The price reduces from $2.00 to $1.80.
Q: The table below shows how total cost TABLE 7-4 Output (per week) Total Cost (dollars) $250 1 $300 2…
A: Marginal cost(MC) refers to the additional cost(C) incurred from producing one more unit of a…
Q: The concept of diminishing returns to a factor of production applies not only to capital but to…
A: The concept of diminishing returns to a factor of production is a fundamental economic principle…
Q: Suppose that labor (hrs) is used to produce vet services (appts) at the Vet Clinic. The wage rate,…
A: Total Revenue Product: TRP refers to the total revenue generated from the production of a certain…
Q: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care…
A: The statement is false. The function of the judicial branch is not to make the law, but to interpret…
Q: P3 P₂ a S₁ = MC P1m n 0 Q₂ Q₂ D₁ = MB a 2. In the graph above, a) total benefit at Q3 is shown by…
A: Total Cost: Total cost refers to the cost incurred on factors of production and on distribution…
Q: Asap
A: 1. Explaining the implications of the structural dependence of the state on capital to someone…
Q: A new type of synthetic netting has been developed that increases the size of each fishing boat's…
A: The question is asking about the impact of an increase in the supply of sardines on the equilibrium…
Q: • Five water treatment plants (WTPs) have been proposed for a city. Each of the plant have a useful…
A: The incremental B/C ratio is an economic metric used to assess the efficiency and profitability of…
Q: 1) 2) Plot the demand curve on a piece of graph paper, labelling it correctly. Label the page demand…
A: Demand schedule is a table that shows the quantity of a good or service that consumers are willing…
Q: What is the primary concern of economics? A) Studying human behavior B) Understanding market…
A: C) Allocation of scarce resourcesExplanation:The primary concern of economics is the allocation of…
Q: In Arkania income rose by $400 million over the past year. During the same period tax revenue…
A: Marginal leakage rate refers to the part of income which is not used for income in starting instead…
Q: Alice (A) and Bob (B) have an endowment of goods 1 and 2, with Alice's endowment being (w, w) = (1,…
A: The Walrasian equilibrium is the macroeconomic situation focusing solely on the market phenomenon.…
Q: Price ($) 12 10 8 Consider a town with three residents. The residents' demand curves for various…
A: Demand represents the willingness of consumers to purchase the goods and services in the…
Q: a. What technique will you want to use if the price of a bar of soap falls to $2.75? (Click to…
A: As mentioned in the question, only parts A and B are solved.The money that remains after expenses…
Q: The interest rate will decrease as a result of which of the following events? Select an answer and…
A: Interest rates refer to the cost of borrowing money or the return on investment for lending money,…
Q: The demand and supply functions for three goods are given as follows: Dx=100-3Px+Py+3Pz Dy=80…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: What are the roles for fiscal policy that might be less effective if left to monetary policy? 2.…
A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…
Q: 7. MRS and utility maximization Suppose your classmate Felix loves to eat dessert-so much so that he…
A: Utility is the satisfying power of a commodity. Consumers' main goal is to maximize the given…
Q: In an oligopoly with a collusive agreement, the total industry profits will be smallest when…
A: The oligopoly market form may occur when the competitors act as a monopoly. The companies put their…
Q: Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA…
A: The present worth of a project or investment refers to its value at present based on the associated…
Q: 7. Weighted least squares Suppose the model y; = ßo+B1x1 + ẞ2x12 + u; suffers from…
A: Heteroskedasticity refers to the situation when the standard deviation associated with a predicted…
Q: Miss Jones, a third grade teacher at Pine Cone Elementary School has decided to bake some treats for…
A: Given in question there are 26 students Now multiply 2 1/2 which is 2.5 times the original recipeThe…
Q: Explain whether policy makers should be more concerned about the economy going into a recession or…
A: The following is a summarized response; however, for a more thorough explanation, refer to the next…
Q: 2. In a federal system of government: a) Power is concentrated in the central government. b) States…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Units of Resource Total Product 24 1 2 42 3 54 4 5 64 72 & Exit The table shows a total-product…
A: The marginal revenue product is the marginal revenue created due to the addition of one unit of…
Q: Name 7 forms of indexing in the private and the public sector? Idenitify several parties likely to…
A: The public sector comprises government-operated entities delivering community services, financed via…
Q: Jack and Jill both obey the two-period Fisher model of consumption. Jack earns $100 in the first…
A: The objective of the question is to find the interest rate 'r' based on the two-period Fisher model…
Q: The figure below shows the hypothetical domestic supply and demand for baseball caps in the country…
A: The individual's ability to buy a product in the market is described as the demand. The consumer has…
Q: A company active in a free competitive market with a market price equal to 20 per unit has a total…
A: Large number of buyers and sellers: No single buyer or seller has a significant enough market share…
Q: How would a tax cut impact the National Budget and the National Debt? What are the pros and cons of…
A: national Budget: The financial plan or statements of government spending for a year is called the…
Q: 7. The amount spent by a customer on a Summer Cruise has a normal distribution with a mean of $95.60…
A: 1) The probability that a randomly selected customer spends less than 95 dollars is 0.4522 2) The…
Q: Compute the value of F in the diagram below. 250, 200 150 * $100 3 Years 0 1 2 i = 10%
A: The future worth of a project or investment refers to its value in the future based on the…
Q: Use the diagram to answer the following few questions. From orders entered for an opening auction,…
A: Demand in the market represents the willingness of consumers to purchase goods and services at the…
Q: 2. Oswego Machine Company (OMC) produces 9,000 multipurpose pliers that sell for $9.50 each. Its…
A: 1. Current costs for the present plant:Total Cost (TC): $58,300Total Fixed Cost (TFC): $25,000Total…
Q: What is the optimum nx? a.6 b.14 c.20 d.18 e.12
A: Second-degree price discrimination is the practice of a monopolist corporation setting different…
Q: D. What are the degree of homogeneity of the following production functions? a. kajẞ b. ak+ẞl c.…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: each company sinks wells of the same size at the same time. If both companies sink wide wells, each…
A: Game theory has numerous important applications in modern socioeconomics, including pricing…
Q: 4. AUTO INSURANCE. Consider a standard auto insurance problem in which we assume wealth levels…
A: Note: Since you have posted a question with multiple sub-parts, we will provide the solution only to…
Q: Refer to Figure 1. Suppose a production subsidy of $20 and the world price is also $35. What would…
A: This can be defined as a concept that shows the cost incurred in the production process of a…
Q: The market demand and supply functions for imported beer are: Qd 48,000 406.25P and Qs…
A: Individually, producer surplus is the difference between the market price and a firm's marginal cost…
Step by step
Solved in 3 steps with 3 images
- 1 1 1. Assume that a country's production function is Y = K2L2. Assume there is no population growth or technological change = f(k)? b. Assume that 10 percent of capital depreciates each year. What gross saving rate is necessary to What is the per-worker production function y а. make the given capital-labor ratio the steady-state capital-labor ratio? (Hint: In a steady state with no population growth or technological change, the saving rate multiplied by per-worker output must equal the depreciation rate multiplied by the capital-labor ratio.) (Ctrl) -Use the following table to find the steady-state values of the capital-labor ratio and output if the per-worker production function is 03 Yt=2k₁ 3 8 n A Saving rate Depreciation rate Population growth rate Technology 0.47 0.03 0.02 2 k* = Steady-state capital-labor ratio= (Round your response to two decimal places.) y* = Steady-state output = (Round your response to two decimal places.)Consider an economy with a Cobb-Douglas production function Y= K1/3 2/3, the rate is 15% Calculate the golden rule steady state capital per worker (koR). Round the numbers up to two decimals 3.18 b.5.18 02.18 od 4.18 growth rate of population is 2%, the rate of capital depreciation is 5%, and the saving
- An economy has the per-worker production function yt=f(kt)=4kt)0.4, where yt is the output per worker and kt is the capital-labor ratio. The depreciation rate is 0.15, and the population growth rate is 0.04. Saving is St=0.5Yt, where St is total national saving and Yt is total output. The slope of the per worker production function is given by f' (kt)=1.6kt-0.6 . What is the steady state value of capital-labor ratio, k*? Round your answer to at least 2 decimal places.Use the following table to find the steady-state values of the capital-labor ratio and output if the per-worker production 03 function is y=2k S Saving rate 8 Depreciation rate n Population growth rate A Technology 0.35 0.02 0.06 2 k* = Steady-state capital-labor ratio = y*= Steady-state output = (Round your responses to two decimal places.) CHILD Output, Investment, and Depreciation Capital-Labor Ratio Output Depreciation Investment After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end the line QSuppose that the production function is Y= 10(K)1/4 (L)3/4 and capital lasts for an average of 50 years so that 2% of capital wears out every year. Assume that the rate of growth of population equals 0. If the saving rate, s =0.128, calculate the steady-state level of capital per worker, output per worker, consumption per worker, saving and investment per worker and depreciation per worker.
- Suppose that the production function is Y = 10 ( K )^1/4 ( L )^3/4 and capital lasts for an average of 50 years . Assume that the rate of growth of population equals 0 and saving rate s = 0.128 . a. Calculate the steady - state level of capital per worker , output per worker , consumption per worker , saving and investment per worker , and depreciation per worker b. Suppose that initial level of capital per worker is 100 , explain the moving process to the steady state . c . Use relevant graph to demonstrate . Plsss provide detailed answers, thank youda qaoudon Suppose that the production function is given by Y=05/K √N, where Y is output, K is capital, and N is the number of workers. The steady-state level of capital per worker in terms of the saving rate, s, and the depreciation rate, 6, is KIN= (Property format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g. a superscript can be created with the character.) The steady-state level of output per worker in terms of the saving rate, s, and the depreciation rate, 6, is VIN= (Property format your expression using the tools in the palette.) The equation for steady-state consumption per worker in terms of the saving rate, s, and the depreciation rate, 6, is CIN=(Property format your expression using the tools in the palette.)Please no written by hand and graph Consider a small world that consists of two different countries, a developed and a developing country. In both countries, assume that the production function takes the following form: Y = F (K, LE) = K¹/4 (LE) 3/4, where Y is output, K is capital stock, L is total employment and E is labour augmenting technology. (a) Does this production function exhibit constant returns to scale in K and L? Explain. (b) Express the above production function in its intensive form (i.e., output per-effective worker y as a function of capital per effective worker k). (c) Solve for the steady-state value of y as a function of saving rate s, population growth rate n, technological progress g, and capital depreciation rate 6. (d) The developed country has a savings rate of 30% and a population growth rate of 2% per year. Meanwhile, the developing country has a savings rate of 15% and population growth rate of 5% a year. Technology evolves at the rate of 8% and 2% in…
- If the share of GDP used for capital goods is 0.3, the growth rate of productivity is 0.01, the growth rate of population is 0.04, the depreciation rate is 0.05, the initial capital/output ratio is 0.53, and the elasticity of GDP with respect to capital is 0.1, then what is the growth rate of the GDP per capita? Use three decimal places. Please show worked solution, thank you very muchAssume that a country's production function is Y = K1/2L1/2 and there is no population growthor technological change.a. What is the per-worker production function y = f (k)?b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor. What isY? What is labor productivity computed from the per-worker production function? Is thisvalue the same as labor productivity computed from the original production function?c. Assume that 10 percent of capital depreciates each year. What gross saving rate isnecessary to make the given capital–labor ratio the steady-state capital–labor ratio? (Hint:In a steady state with no population growth or technological change, the saving ratemultiplied by per-worker output must equal the depreciation rate multiplied by the capital–labor ratio.)d. If the saving rate equals the steady-state level, what is consumption per worker?Assume that a country's production function is Y = K1/2L1/2 and there is no population growthor technological change.a. What is the per-worker production function y = f (k)?b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor. What isY? What is labor productivity computed from the per-worker production function? Is thisvalue the same as labor productivity computed from the original production function?c. Assume that 10 percent of capital depreciates each year. What gross saving rate isnecessary to make the given capital–labor ratio the steady-state capital–labor ratio? (Hint:In a steady state with no population growth or technological change, the saving ratemultiplied by per-worker output must equal the depreciation rate multiplied by the capital–labor ratio.)d. If the saving rate equals the steady-state level, what is consumption per worker? Only D, other option answered