ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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QUESTION 1 1.1 Entrepreneurial activities may be harmful to
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- 3. An economy described by the Augmented Solow growth model has the following production function with populationgrowth (1+n) and technological growth (1+z):y =p(k)(a) Solve for the steady-state values of capital per capita and output as a function of s, n, z, and δ.(b) A developed country has a saving rate of 28 percent and a population growth rate of 1 percent per year. A lessdeveloped country has a saving rate of 10 percent and a population growth rate of 4 percent per year. In bothcountries, g = 0.02 and d = 0.04. Find the steady-state value of y for each country.(c) What policies might the less developed country pursue to raise its level of income? Graphically demonstrate howyour advised policy would increase income per capita (y).arrow_forwardQuestion 3 What has been the average annual growth rate of U.S. real GDP per person over the 120 years from 1900 to 2020? In which decade, beginning with the 1960s, was the growth of potential GDP per person greatest and slowest? Over the 120 years from 1900 to 2020, the average annual growth rate of U.S. real GDP per person is 1.5 percent. That's incorrect. Over the 120 years from 1900 to 2020, the average annual growth rate of real GDP per person in the United States wasn't 1.5 percent.arrow_forward2. a) Why is the difference between 2% and 3% steady yearly real GDP growth in the US economy a huge difference, if its only a difference of 1%? b) Explain why productivity is so essential for growth of the economy. c) What are two government policies that could increase US economic productivity? d) What is the role of Investment in contributing to productivity?arrow_forward
- 6arrow_forwardCreate an entrepreneurship and socio-economic development relationship mind map. In your relationship mind map, illustrate the interconnectivity of entrepreneurship and socio-economic benefits. NOTE THAT YOUR ILLUSTRATION SHOULD READILY SHOW THE INTERCONNECTION OF ENTREPRENEURSHIP AND SOCIO-ECONOMIC DEVELOPMENT. You may add short descriptions in your illustration to convey your point so that when the reader looks at it, they can readily understand the interrelationships.arrow_forwardAnswer the following options Q#9) What has been true about the long term growth rate and growth path followed by the advanced nations since 1750 – the dawn of the “industrial revolution”? (a) GDP growth has been modest, continuing the same trend from previous eras (b) GDP growth has increased enormously due to technical advances Q#10) When the government takes the lead and pro-actively guides, supports and fosters technology advances and innovation, such as with the Internet, in aero- space (NASA) or Covid19 vaccines, which theory of economic growth is utilized? (a) Neo-Classical Theory (b) Classical Theory (c) New Growth Theoryarrow_forward
- Of the following, which is a way that government can create a healthy climate for economic growth? Group of answer choices by instituting policies that discourage a competitive market by creating policies that encourage lifelong education by setting higher taxes by discouraging public sector investment in new technologiesarrow_forwardEconomic growth theories have discussed growth factors from various perspectives. Critically discuss the similarities and differences in growth factors based on Adam Smith's, David Ricardo's, and Harrod-Domar's theories.arrow_forward) The goal is to analyze further the two-sector endogenous growth model. Write down the equation of motion for k, which shows delta k as saving minus break-even investment. (Break-even investment is the amount of investment needed to keep capital per effective worker constant.) Draw a graph that determines the steady-state k. In this economy, what's the steady-state growth rate of output per work? How do the saving rate and fraction of labor force in universities (u) affect this steady-state growth rate?arrow_forward
- 31) Given the narrow interpretation of technology, technology will include which of the following? A) how well firms are run B) the organization and sophistication of markets C) the political environment D) none of the above 32) Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run A) the growth rate of output per capita will be greater in B than in A. B) the growth rate of output per capita will be greater in A than in B. C) the capital-labor ratios (K/N) will be the same in both countries. D) the growth rate of output per capita will be the same in both countries. 33) Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run A) the capital-labor ratio…arrow_forward2.a) Provide a definition of ‘technological capability and ‘social capability and describe the differences between them. Why can we say that innovation has a ‘systemic’ nature? 2.b) Financial development, social capital, favorable business regulation, trade openness are different aspects of ‘social capability’ influencing innovation processes and, therefore, economic development. Make a ranking of these factors according to their observed degree of importance for economic development. Explain why ‘inclusiveness’ and ‘equality in opportunities’ can strengthen the innovation capability of an economy. 2.c) Figure 1 below shows the cross-country correlation between the development of the education system and the level of economic development. Analyze Figure 1 by arguing about the importance of the education system for economic development in low, emerging, and developed countriesarrow_forwardIn our one country model of technology growth, y = A(1- γA). Suppose that the country temporarily raises its level of γA. (a) Draw two graphs, one for y and one for A, showing how the time paths of output per worker (y) and productivity (A) will compare under this scenario with what would have happened if there had been no change in γA Please do fast ASAP fastarrow_forward
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