Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 20, Problem 11SCQ
Would you expect capital deepening to result in diminished1‘etmns? Why or why not? Would you expect improvements in technology to result in diminished returns? Why or why not?
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Chapter 20 Solutions
Principles of Economics 2e
Ch. 20 - Explain what the Industrial Revolution was and...Ch. 20 - Explain the difference between property rights and...Ch. 20 - Are there other ways in which we can measure...Ch. 20 - Assume there are two countries: South Korea and...Ch. 20 - What do the growth accounting studies conclude are...Ch. 20 - What policies can the government of a free-market...Ch. 20 - List the areas where government policy can help...Ch. 20 - Use an example to explain why, after periods of...Ch. 20 - Would the following events usually lead to capital...Ch. 20 - What are the advantages of backwardness for...
Ch. 20 - Would you expect capital deepening to result in...Ch. 20 - Why dues productivity growth in high-income...Ch. 20 - How did the Industrial Revolution increase the...Ch. 20 - How much should a nation be concerned if its rate...Ch. 20 - How is GDP per capita calculated differently from...Ch. 20 - How do gains in labor productivity lead to gains...Ch. 20 - What is an aggregate production function?Ch. 20 - What is capital deepening?Ch. 20 - What do economists mean when they refer to...Ch. 20 - For a high-income economy like the United States,...Ch. 20 - List some arguments for and against the likelihood...Ch. 20 - Over the past 50 years, many countries have...Ch. 20 - Labor Productivity and Economic Growth outlined...Ch. 20 - Change in labor productivity is one of the most...Ch. 20 - Refer back to the Work It Out about Comparing the...Ch. 20 - Education seems to be important for human capital...Ch. 20 - Describe some of the political and social...Ch. 20 - Why is investing in girls education beneficial for...Ch. 20 - How is the concept of technology, as defined with...Ch. 20 - What sorts of policies can governments implement...Ch. 20 - As technological change makes us more sedentary...Ch. 20 - An economy starts off with a GDP per capita of...Ch. 20 - An economy starts off with a GDP per capital of...Ch. 20 - Say that the average worker in Canada has a...Ch. 20 - Say that the average worker in the U.S. economy is...
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Similar questions
- What is the opportunity cost of investing in the capital?Do you think a country can overinvest in capital?What is the opportunity cost of investing in human capital?Do you think a country can overinvest in human capital?Explain.arrow_forwardWhat are the disadvantages/limitations of Endogenous growth theoriesarrow_forwardWhat happens in the steady state to the capital-labor ratio, output per worker, and consumption per worker when each of the following events occur? You should assume that the steady-state capital- labor ratio is below the Golden Rule level. k y C a) Productivity falls b) Population growth falls c) The saving rate falls d) The depreciation rate fallsarrow_forward
- What is the opportunity cost of investing in a physical capital?arrow_forwardAssume that a economy holds two factors of production, human capital managed by native-born workers and low skilled migrants. If large migration of low skilled migrants occurs, how will the influence the rate of return on human capital?arrow_forwardWhat happens in the steady state to the capital-labor ratio, output per worker, and consumption per worker when each of the following events occur? You should assume that the steady-state capital-labor ratio is below the Golden Rule level.arrow_forward
- What are the implications of this model for "convergence" of income levels and income growth rates - conditional on differences in endowments, government policies, and other exogenous factors - across countries? -arrow_forwardExplain the opportunity cost of investing in capital. Is there any difference in the opportunity cost of investing in human capital versus physical capital?arrow_forwardCivil Conflict = 0.27 - 0.38GDP Growth Ratecompute the change in the probability of a country experiencing a civil conflict, if the country’s GDP growth rate falls from +.10 to -.10. What does this number mean in words?arrow_forward
- As economic growth models become more and more inclusive of realistic conditions and incorporating complexities of the economy, disaggregation on inputs were introduced in capital (having physical and financial components). How does this labor disaggregation compare with that of capital, and its implications with less developed countries like the Philippines (aiming for a more robust economic growth)?arrow_forwardExercise 4: Growth and capital over-accumulationSuppose two countries, A and B, with the same production function Y = KαL1−α. Thevalue of α is 0.30, the growth rate of population is 2% and the depreciation rate is 5%.a) Show that with price-taking firms the share of labor must be 1 − α.b) Compute the stock of capital, output and consumption per unit of labor in the steadystate if the savings rates were 25% for country A and 35% for country B.c) Compare both economies to the Golden Rule.d) Explain what would happen to both countries if suddenly their savings rate becamethe Golden Rule savings rate.arrow_forwardThe smaller the percentage of people who work, the higher the potential output per capita.arrow_forward
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