Consider two countries, Zerka and Xena. In Zerka total annual output is worth $500 million and people work 40 million hours. In Xena total annual output is worth $600 million and people work 50 million hours. A) From the information above, in which country is productivity higher? B) Economists use the term ______________________________ to refer to the ability to produce a good using fewer inputs than another producer. C) Economists use the term ______________________________ to refer to the ability to produce a good at a lower opportunity cost than another producer.

(Figure: Nations A and B) Use Figure: Nations A and B. Suppose that, in 1960, each nation had S100 of physical capital per worker and that, in 2018, cach nation had $400 of physical capital per worker. Compute the growth rate of real GDP per capita for both nations. Real GDP per capita 5000 3000 2000 1000 100 400 Physical capital per worker

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Question 9 The diagram below shows two production possibility frontiers for a country. Consumer Goods A B C D A A to C B to C C to D D to E B C E D Which of the following is most likely to represent an increase in short run economic growth. A movement from Capital Goods

Assume that a leader country has real GDP per capita of $40,000, whereas a follower country has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 2 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country?

Show Transcribed Text 160) Refer to Table 2-21. This table shows the number of labor hours required to produce a digital camera and a bushel of wheat in China and South Korea. China South Korea Digital Camera 100 hours 90 hours 161) Refer to Table 2-21. This table shows the number of labor hours required to produce a digital camera and a bushel of wheat in China and South Korea. China South Korea Total a. Assume each country has a total of 9,000 labor hours to devote to the production of the two goods and draw the production possibilities frontier for each country. Put "Digital Camera" on the horizontal axis and "Wheat" on the vertical axis. Be sure to identify the intercept values on your graphs. b. Suppose each country allocates 60% of its labor hours to wheat production and 40% to the production of digital cameras. Complete Table 2-22 below to show each country's output of the two products. Table 2-22: Production and Consumption with no Trade Digital Camera Wheat Output Output…

Problem 5 A “miraculous" Asian economy has an aggregate wage bill of 300 billion dollars and an aggregate GDP of 500 billion. The annual growth rate of aggregate GDP for this economy over the last 10 years was 7 percent (that is AY/Y=0.07) and the growth rate of labor was 6 percent (AL/L=0.06). Imagine that the production function is given by the standard Cobb-Douglas AK“L“. ,а, 1-а Y What are the "capital share (a)" and the "labor share (1 – a)"? b. Imagine that the government controls the national accounts. In its quest to improve its reputation, the government mistakenly thinks that having "a lot of investment" will make it look good so it "inflates" its growth of capital number to 12% (AK/K=0.12). When researchers estimate the rate of productivity growth (AA/A), what will they find? Is the growth rate of technology positive or negative? Does your result in (b) make sense? d. The actual truth is that the growth rate of capital was one half of what it announced. That is, instead of…