Consider two countries, labeled 1 and 2. Each has the production function Y; = A, KL-a, for i=1,2. Assume that the countries currently have the same GDP per person, L₁= L₂, common saving.population growth, and depreciation rates, and K₁ K₂. Based on this information you know that, in<the long run, GDP per capita in country 1 (₁) isy/2.Ogreater thanless thanO equal toShow Transcribed TextIn the knowledge production function AAt+1 ZAt Lat, the parameter 2 represents and Atcaptures the idea that......O the cost of producing new ideas; get's harder to generate new knowledge over time.Ohow good an economy is at generating knowledge; new ideas are built on old ideas.O the marginal cost of labor; rich (productive) countries have a higher growth rate then poor ones.O the scarcity of skilled labor; small countries are at a disadvantage when it comes to producingnew knowledge.Show Transcribed Textanswer of these two questions

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Consider two countries, labeled 1 and 2. Each has the production function Y; = A, KL, for i = 1, 2. Assume that the countries currently have the same GDP per person, L₁= L₂, common saving. population growth, and depreciation rates, and K₁ the long run, GDP per capita in country 1 (₁) is K₂. Based on this information you know that, in 2. greater than less than equal to Show Transcribed Text In the knowledge production function AA++1 = ZA+Lat. the parameter z represents captures the idea that and A the cost of producing new ideas; it get's harder to generate new knowledge over time. how good an economy is at generating knowledge; new ideas are built on old ideas. the marginal cost of labor, rich (productive) countries have a higher growth rate then poor ones. the scarcity of skilled labor; small countries are at a disadvantage when it comes to producing new knowledge.

Consider two countries, labeled 1 and 2. Each has the production function Y; = A, KL, for i = 1, 2. Assume that the countries currently have the same GDP per person, L₁= L₂, common saving. population growth, and depreciation rates, and K₁ the long run, GDP per capita in country 1 (₁) is K₂. Based on this information you know that, in 2. greater than less than equal to Show Transcribed Text In the knowledge production function AA++1 = ZA+Lat. the parameter z represents captures the idea that and A the cost of producing new ideas; it get's harder to generate new knowledge over time. how good an economy is at generating knowledge; new ideas are built on old ideas. the marginal cost of labor, rich (productive) countries have a higher growth rate then poor ones. the scarcity of skilled labor; small countries are at a disadvantage when it comes to producing new knowledge.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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