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Exercise 6 (+additional question) in Mankiw:
... Problem 6D. An unskilled workers earns the marginal product of labor, whereas a skilled worker earns the marginal product of labor plus the marginal product of human capital. Using your answers to (a) and (b), find the ratio of the skilled wage to the unskilled wage. How does an increase in the amo ...
... Problem 6D. An unskilled workers earns the marginal product of labor, whereas a skilled worker earns the marginal product of labor plus the marginal product of human capital. Using your answers to (a) and (b), find the ratio of the skilled wage to the unskilled wage. How does an increase in the amo ...
Exercise 6 (+additional question) in Mankiw - IEI
... 3.3C. Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage? 3.3D. Suppose that a technological advance raises the value of the parameter A by 10 percent. What happens to total output ( ...
... 3.3C. Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage? 3.3D. Suppose that a technological advance raises the value of the parameter A by 10 percent. What happens to total output ( ...
UNIT TEST and STUDY GUIDE INTRODUCTION TO ECONOMICS
... 11. How does voluntary trade help the economy? a. Voluntary trade means prices will always be low. b. It encourages specialization and usually means more profit. c. This sort of trade involves many government regulations. d. Voluntary trade only works when tariffs are in place. 12. Why is specializa ...
... 11. How does voluntary trade help the economy? a. Voluntary trade means prices will always be low. b. It encourages specialization and usually means more profit. c. This sort of trade involves many government regulations. d. Voluntary trade only works when tariffs are in place. 12. Why is specializa ...
MAKING SENSE OF CHINA’S ECONOMIC TRANSFORMATION Dic Lo
... however. The real growth rate of per capita income for all low-income and middle-income economies was a mere 1.3% per annum in the 1980s, and 1.8% in the 1990s. The same rate for all low-income economies excluding China and India actually fell sharply, from the already low level of 2.0% per annum i ...
... however. The real growth rate of per capita income for all low-income and middle-income economies was a mere 1.3% per annum in the 1980s, and 1.8% in the 1990s. The same rate for all low-income economies excluding China and India actually fell sharply, from the already low level of 2.0% per annum i ...
1 Aggregate Consumption, Aggregate Demand, GDP and the
... inventory at the beginning of the same year - we can also think about this in just the opposite terms with consumption being greater than expected and the change in inventory being negative. We call this unintended change in inventory, inventory unplanned (IU). So, reflecting back on the initial ass ...
... inventory at the beginning of the same year - we can also think about this in just the opposite terms with consumption being greater than expected and the change in inventory being negative. We call this unintended change in inventory, inventory unplanned (IU). So, reflecting back on the initial ass ...
The demand for loanable funds
... • Characteristics of a Bond – Tax Treatment 税收待遇: The way in which the tax laws treat the interest earned on the bond. – The interest on most bonds is taxable income, so that the bond owner has to pay a portion of the interest in income taxes. By contrast, when state and local governments issue bond ...
... • Characteristics of a Bond – Tax Treatment 税收待遇: The way in which the tax laws treat the interest earned on the bond. – The interest on most bonds is taxable income, so that the bond owner has to pay a portion of the interest in income taxes. By contrast, when state and local governments issue bond ...
between countries
... • σ divergence for the world recently, but also historically, since the Industrial revolution • σ or unconditional divergence is the same as increase in Concept 1 inequality (Gini instead of st. deviation of logs) • The world of increasing returns to scale PF is a world of high income and very high ...
... • σ divergence for the world recently, but also historically, since the Industrial revolution • σ or unconditional divergence is the same as increase in Concept 1 inequality (Gini instead of st. deviation of logs) • The world of increasing returns to scale PF is a world of high income and very high ...
Lecture 17
... China has a high growth rate, but started very far behind the United States and still has a long way to go. Continued growth of China’s ECON ...
... China has a high growth rate, but started very far behind the United States and still has a long way to go. Continued growth of China’s ECON ...
Loanable funds - FMT-HANU
... Market for loanable funds: coordinate the economy’s saving and investment. Loanable funds: all income that people have chosen to save and lend out, rather than use for their own consumption. ...
... Market for loanable funds: coordinate the economy’s saving and investment. Loanable funds: all income that people have chosen to save and lend out, rather than use for their own consumption. ...
Axel Leijonhufvud DID KEYNES MEAN ANYTHING? REJOINDER TO YEAGER
... the theoretical possibility ofthis kind ofcoordination problem, therefore, it is vital to think in terms of a model in which money is the means of exchange. “Barter” models will not do. Today, the New Classical Economics has made it utterly commonplace to discuss macroeconomic problems from this inf ...
... the theoretical possibility ofthis kind ofcoordination problem, therefore, it is vital to think in terms of a model in which money is the means of exchange. “Barter” models will not do. Today, the New Classical Economics has made it utterly commonplace to discuss macroeconomic problems from this inf ...
Lessons from the Dutch Disease:
... This review is followed by a brief discussion of the disappointing economic growth record of the OPEC countries, and then by a brief discussion of the lessons that may be drawn from Norway’s singularly successful management of its oil wealth. ...
... This review is followed by a brief discussion of the disappointing economic growth record of the OPEC countries, and then by a brief discussion of the lessons that may be drawn from Norway’s singularly successful management of its oil wealth. ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... favorable factors. First, thanks to the industrialization in the previous period, the two economies had already achieved, by around 1910, a minimum level of infrastructural as well as industrial development, upon which further advancements were based. Second, another crucial factor that enabled thos ...
... favorable factors. First, thanks to the industrialization in the previous period, the two economies had already achieved, by around 1910, a minimum level of infrastructural as well as industrial development, upon which further advancements were based. Second, another crucial factor that enabled thos ...
The State of Employment and Unemployment in South Africa
... For example, the supply of labour suitable to a middle-income economy was constrained by a complementary set of adverse education, population control and labour market measures, whilst at the same time having the effect of diminishing household incomes and therefore a nation’s greatest resource: its ...
... For example, the supply of labour suitable to a middle-income economy was constrained by a complementary set of adverse education, population control and labour market measures, whilst at the same time having the effect of diminishing household incomes and therefore a nation’s greatest resource: its ...
mmi04-razin 224754 en
... Evidently, the equilibrium relation between inflation and excess capacity is significantly influenced by the degree of competition in the product market. A key feature of such an equilibrium is the degree of strategic interactions between firms that set their prices ex ante and other domestic and f ...
... Evidently, the equilibrium relation between inflation and excess capacity is significantly influenced by the degree of competition in the product market. A key feature of such an equilibrium is the degree of strategic interactions between firms that set their prices ex ante and other domestic and f ...
ŁUKASZ PIĘTAK Review Of Theories And Models Of
... In terms of sustainable development, a turning point took place in the late 1980's, when for first time a definition for it was given, emphasizing that development had to meet present needs without the risk that future generations will not be able to meet their needs. In 1992, at the United Nations ...
... In terms of sustainable development, a turning point took place in the late 1980's, when for first time a definition for it was given, emphasizing that development had to meet present needs without the risk that future generations will not be able to meet their needs. In 1992, at the United Nations ...
Ragnar Nurkse's balanced growth theory
The balanced growth theory is an economic theory pioneered by the economist Ragnar Nurkse (1907–1959). The theory hypothesises that the government of any underdeveloped country needs to make large investments in a number of industries simultaneously. This will enlarge the market size, increase productivity, and provide an incentive for the private sector to invest.Nurkse was in favour of attaining balanced growth in both the industrial and agricultural sectors of the economy. He recognised that the expansion and inter-sectoral balance between agriculture and manufacturing is necessary so that each of these sectors provides a market for the products of the other and in turn, supplies the necessary raw materials for the development and growth of the other.Nurkse and Paul Rosenstein-Rodan were the pioneers of balanced growth theory and much of how it is understood today dates back to their work.Nurkse's theory discusses how the poor size of the market in underdeveloped countries perpetuates its underdeveloped state. Nurkse has also clarified the various determinants of the market size and puts primary focus on productivity. According to him, if the productivity levels rise in a less developed country, its market size will expand and thus it can eventually become a developed economy. Apart from this, Nurkse has been nicknamed an export pessimist, as he feels that the finances to make investments in underdeveloped countries must arise from their own domestic territory. No importance should be given to promoting exports.