Macroeconomics
Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
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Chapter 6, Problem 1IP
To determine

Future of the England with more machines than the slaves.

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The Black Death: (a) Wages were higher after the Black Death because of diminishing returns. Our production model exhibits diminishing returns to labor: each additional unit of labor increases output by less and less. So if the amount of labor is reduced, the marginal product of labor — and hence the wage — increases. The reason is that capital stays the same: each remaining worker is able to work with more machines, so his productivity rises. In fourteenth-century Europe, the marginal workers could move to better land and discard old broken-down tools. Graphically, this can be seen by considering the supply-and-demand diagram for labor in Figure 4.2(b). If the supply of labor shifts back (because a large number of workers die), the equilibrium wage rate increases. Draw this graph — including the shift in the labor supply curve — to see the result for yourself. Mathematically, the result can be seen in the solution for the wage rate in our production model,…
In Avengers: Infinity War the character Thanos seeks to use the power of the infinity stones to eliminate half the people in the universe. If output of the universe can be modeled by y= Ax F(K.L) where F(KI)= Kl/3, 2/3 with an initial K = 100, L = 100, and A = 1, then how much would output change if Thanos gets his wish? (Calculate the percent change and give your answer as a decimal. It will be negative because output will be lower.)
06:52 < Title Ebenezer and Scrooge are two countries that can trade with each other. There are two items, (H) and (J). There is only one factor of production: labor (measured as working hours per time period). The labor input per produced unit of the two goods can be seen below. The assumptions of the Ricardo model are met. Country: Ebenezer Item H=20 Item J=10 Country: Scrooge Item H: 18 Item J: 6 So the question is: Is the following statement true or false? “Since 10 < 20, Ebenezer has one absolute advantage in the production of good J? ( =T Vo)) LTE1 .Il 90% |4 T (T) 17▼
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