PRINCIPLES OF MACROECONOMICS-CONNECT ACC
7th Edition
ISBN: 9781264088485
Author: Frank
Publisher: MCG
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Chapter 7, Problem 7RQ
To determine
Identify the major contributions of government to achieve the goal of increasing the average labor productivity.
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Students have asked these similar questions
Many countries, including Pakistan, import substantial amounts of goods and services from other countries. However, economists claim that a country can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. Can you reconcile these two facts? (Maximum 100 words).
Given the production function Y= AF (L, K, H, N), explain the determinants of productivity. ( Maximum100 words).
Population growth has a variety of effects on productivity. Explain this statement and justify your answer. (Maximum 200 words).
Q4:
a; Many countries, including Pakistan, import substantial amounts of goods and services from other countries. However, economists claim that a country can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. Can you reconcile these two facts? ( Maximum 100 words).
b: Given the production function Y= AF (L, K, H, N), explain the determinants of productivity. ( Maximum100 words).
c: Population growth has a variety of effects on productivity. Explain this statement and justify your answer. (Maximum 200 words).
In 2000, a small nation has real GDP of $20,000 and a population of 150. By 2010, real GDP has grown to $30,000, and
improved nutrition has allowed the population to increase to 220.
Which statement must be true for this nation?
In another 10 years, there will not be enough capital equipment for workers to use.
Per capita GDP is higher in 2010 than it was in 2000.
The high rate of population growth has caused real GDP per capita to fall.
The productivity of labor in this nation has remained constant.
As the nation's leading expert in economics, you have been asked to present a series of economic policies you believe would be
helpful to the nation. Because of budget constraints, the legislature also wants you to rank your suggestions.
Which suggestion would be last on your list of policy proposals?
research and development funding
strict population control measures
improvement of the educational system
reduction of trade barriers
Chapter 7 Solutions
PRINCIPLES OF MACROECONOMICS-CONNECT ACC
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- Productivity and growth policies Consider a hypothetical small island nation in which the only industry is cloud computing. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Year 2039 2040 Physical Capital (Servers) 200 480 Labor Force (Workers) Based on your calculations, productivity from 2039 to 2040. 100 120 Physical Capital per Worker (Servers) Labor Hours (Hours) 4,500 4,200 in physical capital per worker from 2039 to 2040 is asociated with Suppose you're in charge of establishing economic policy for this small island country. Output (TB of data storage) 40,500 75,600 Imposing restrictions on foreign ownership of domestic capital Subsidizing research and development…arrow_forward1.Many countries, including Pakistan, import substantial amounts of goods and services from other countries. However, economists claim that a country can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. Can you reconcile these two facts? (Maximum 100 words). 2.Given the production function Y= AF (L, K, H, N), explain the determinants of productivity. ( Maximum100 words). 3.Population growth has a variety of effects on productivity. Explain this statement and justify your answer. (Maximum 200 words).arrow_forwardConsider a hypothetical small island nation in which the only industry is cloud computing. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Physical Capital (Servers) Labor Force (Workers) Physical Capital per Worker (Servers) Labor Hours (Hours) Year Output (TB of data storage) Labor Productivity (TB of data storage per hour of labor) 2042 400 100 2043 240 120 4,000 7,800 31,200 32,000 Based on your calculations, productivity from 2042 to 2043. in physical capital per worker from 2042 to 2043 is associated with Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the…arrow_forward
- Question 6 The president of the World Bank has asked you to calculate the average per capita GDP growth rate of Rwanda from 1980 to 2010. In 1980, per capita GDP was about $728 and in 2010 it was about $1,025. You tell him the average growth rate of per capita GDP is about percent. 223 O1.1 O1 O23arrow_forwardSuppose that the production function for an economy is given by Y F(K, L) = AK'/BL2/3 Where Y is output, A is the level of technology, K is capital and L is labor. If the value of L is 100, the value of K is 400, and the value of A is 2, what is the per capita value of output in this economy?arrow_forwardThe following table shows levels of real income per person in several economies during the years 1960 and 2010. The table further shows the average annual growth rate for each economy over this time period. For instance, real income per person in Niger was $945 in 1960, and it actually declined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, and it featured the lowest level of real income per person of any economy listed in the table in the year 2010. The levels of real income per person are reported in U.S. dollars using a base year of 2005. The following exercises will provide insight into the different growth experiences of these nations. Economy Canada United Kingdom Korea Hong Kong Guatemala Niger Indicate which economy satisfies each of the following statements. Statement This economy experienced the fastest rate of growth in real income per person from 1960 to 2010. Real Income per Person in 1960 Real Income per Person in 2010 (Dollars)…arrow_forward
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