Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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One problem with all exponential growth models is that nothing can grow exponentially forever. Describe factors that might limit the size of a population.
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- May I know why the endogenous growth model that represents standard of living and economic growth is drew in a straight line? Why it is a straight line?arrow_forwardExplain Modeling Population Growth ?arrow_forwardIn the endogenous growth model of chapter 8, suppose that there are three possible uses of time. Let u denote the fraction of time spent working, s the fraction of time being unemployed and doing nothing, and 1-u-s the fraction of time spent acumulating human capital. Assume that z-1 and b-4.2 Also assume that the economy begins in period 1 with H=100 units of human capital. Suppose that the fraction spent working is 0.7 and the fraction spent unemployed is 0.05. Calculate aggregate human capital in period 5. 120 120.55 121 121.55arrow_forward
- What is Malthusian theory of population growth and what are its limitations?arrow_forwardWhy might the Coronavirus pandemic cause slowed economic growth?arrow_forwardHow does the role of government influence economic growth? As the size of government increases as a share of the economy, how is the growth rate of real GDP likely to be affected? Explain.arrow_forward
- Which country looks like it's experiencing exponential growth?arrow_forwardLet's explore what happens to the size of a population when it overshoots its carrying capacity. Sometimes, for a brief period of time, populations can exceed their carrying capacity. This can happen, for example, if food becomes a limiting factor; there may be a delay before reproduction declines, causing the population to exceed its carrying capacity briefly. 1. Assume that rmax is 1.0 and the carrying capacity is 2,000. Calculate the population growth rate when N= 2,100 and when N= 2,500 individuals. 2. If rmax is doubled, predict how the population growth rate will change for the two populations given in the previous problem. Then, calculate the population growth rate for the same two cases above, except this time assuming rmax is 2.0. 3. Sometimes after a population briefly exceeds their carrying capacity, there will be a drop in population numbers well below their carrying capacity before it begins increasing again. What is a possible explanation for the drop seen after…arrow_forwardSuppose that , z the marginal product of efficiency units of labor, increases in the endogenous growth model. What effects does this have on the rates of growth and the levels of human capital, consumption, and output? Explain your results.arrow_forward
- Graphically illustrate the changes over time in the table using the Lewis Model. Note that this means one assumption from the table will not be able to hold true in this model of economic development. Point out the difference on your graph.arrow_forwardSuppose A, B and C are quantities that change over time. It can be shown that if A = BC then the percent growth in A equals the percent growth in B plus the percent growth in C. Suppose that GDP grows at 6% and population grows at 2%. Then what percent does GDP per person grow at?arrow_forwardWhat is the mainstream 'Stages of Growth' model of how countries develop? When people who advocate for the 'Stages of Growth' model say that countries should "redistribute from growth," what do they mean?arrow_forward
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