**Question 9**The production process of a particular company displays constant returns to scale. Then, if such company doubles all the inputs, the output:a. doubles as well.b. more than double.c. remains unchanged.d. triples.*Selected answer: a***Question 10**$ Y - \bar{T} - C $, in a closed economy, represents:a. national savingb. private savingc. public savingd. government tax revenue*Selected answer: b* **Question 7:**The introduction of the video cassette recorder in the 1970s exemplified a problem in measuring the cost of living; that problem is the problem of:a. substitution bias. b. product-improvement bias. c. introduction of new goods. d. unmeasured quality change.*Correct Answer: c.*---**Question 8:**The definition of productivity is:a. real GDP per worker. b. nominal GDP per worker. c. natural resources per worker. d. physical capital per worker.*Correct Answer: a.*

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The production process of a particular company displays constant returns to scale. Then, if such company doubles all the inputs, the output a. doubles as well. b. more than double. remains unchanged. с. d. triples. QUESTION 10 Y -T- C. in a closed economy, represents a. national saving b. private saving public saving с. d. government tax revenue a

The production process of a particular company displays constant returns to scale. Then, if such company doubles all the inputs, the output a. doubles as well. b. more than double. remains unchanged. с. d. triples. QUESTION 10 Y -T- C. in a closed economy, represents a. national saving b. private saving public saving с. d. government tax revenue a

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

in solow swan does a one time increase in saving rate increase rate of growth of capital per worker in short run and long run
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Answer if true or false. • Due to trade-off, Capital & Income has an inverse relationship. • With the absence of savings, countries has no way to increase growth. Thus, going into a vicious circle.
2. It is 1960. China's economy is in its steady state. It is predicted that the Chinese population will expand multi-fold over the next few decades. As an expert in economic growth, you have been called in to provide predictions about the economic effect of such population growth. a. Using the Solow diagram below, illustrate the effect on an increase in population growth on the post-1950 Chinese economy. у, і, б ہے k* Output Investment k Dep + Pop growth b. Explain (briefly) why this policy made sense to the government in 1960.
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4.
Can you please help me?
Depreciation a. does not change the amount of capital in the economy. b. is the decrease in the capital stock because of wear and tear. c. is also known as capital consumption. d. Both answers is the decrease in the capital stock because of wear and tear and is also known as capital consumption are correct.
If in a small economy both real GDP and capital grow by 9%, technological progress is 2%, by how much labor must have increased in this economy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с d 9%. 6%. 2%. 1%.
5. Foreign aid: Consider a Solow economy that begins with a capital stock equal to $300 billion, and suppose its steady-state level of capital is $500 billion. To its pleasant surprise, the economy receives a generous gift of foreign aid in the form of $100 billion worth of capital (electric power plants, machine tools, etc.). (a) Use the Solow diagram, other graphs, and the mathematics of the Solow model to explain what happens to the economy, both immediately and over ads time. By what proportion does consumption per person initially increase? What happens to consumption in the long run? (b) Suppose instead of starting below its steady state, the economy begins in steady state, with a capital stock equal to $500 billion. Answer part (a) for this case. (c) Summarize what this exercise teaches you about the possible consequences of foreign aid. In this example, does foreign aid exert a long-run effect on the welfare of poor countries? What is the benefit of foreign aid?