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In theory, differences in output across economies and over time might be the result of differences in either capital input, labor input, or productivity. The evidence points clearly to productivity as a more likely and powerful source of growth differences. Which aspects of the Solow growth model help to explain why the inputs of capital and labor contribute little to growth of output, relative to productivity?
Are there any changes in the system that could improve savings rates? Should saving be the sole responsibility of individual citizens, or should corporations, financial institutions and markets, and government agencies have active roles in regulating..
When it comes to work, how can the law of supply apply to me personally?
In this question, we analyze results from a study released by by the U.S. Department of Agriculture about wheat production in the United States in 1998.
The following two individual demand curves represent an entire market for a commodity. What is the market demand curve for the commodity? show the market demand in equation and graphical form. (a) P=60-10Q (b) P=60-15Q
Use the money market and FX diagrams to answer the following questions about the relation- ship between the euro and US dollar. We would consider how a change in the U.S. money supply affects interest rates and exchange rates. Suppose that US tempora..
What is the difference between a horizontal analysis and a vertical analysis of balance sheets and income statements?
Costs for maintaining buildings at an industrial complex over a 13-year period are expected to be $3,932 in year 1, increasing at the rate of 15% per year through year 13. At an interest rate of 15% per year, what present worth (at time 0) is equival..
What is Macroworld's cost of debt on a before and after-tax basis? What is the dividend discount model (DCF) estimate of Macroworld's cost of retained earnings?
Suppose there are two competing companies in an industry that has a network externality. Explain why it is likely that the company able to sustain the largest initial losses will eventually dominate the market.
What is the definition of term inflation and how it is used as a measure of economic performance. What are some examples?
Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living:
Why are values important in development economics? If we say that the economy of the Central African Republic is subsistence economy, what would that mean? According to The New Economic View of Development, why economic development is different from ..
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