Find the capital-labour ratio and also the output

Assignment Help Business Management
Reference no: EM131279338

The output of an economy is characterized by a Cobb-Douglas production function with constant return to scale and an output elasticity with respect to capital equal to 0.3. Also given are the following parameters: 30% saving rate, 5% depreciation rate, 2% population growth rate, and the technology factor is 2.

a). Find the capital-labour ratio, and also the output, consumption and investment on a per capita basis in the steady state equilibrium.

b). Is a government policy that raises the saving rate to 40% socially desirable? Explain your answer with reference to a comparison of this new steady state equilibrium and the initial steady state equilibrium in a) above.

c). If the initial capital-labour ratio is 30, is the economy operating efficiently in the sense that welfare cannot be improved? Explain concisely. What if the initial capital-labour ratio is 15? Again explain concisely.

Reference no: EM131279338

Questions Cloud

Use to identify internal managerial talent : How is internal assessment useful for more than just evaluating employees for other positions in the company? What advise would you give the CEO and which methods would you suggest he/she use to identify internal managerial talent? Why?
In what scenario would the fed policies not work : In what scenario would the Fed policies not work? What is required for monetary policies to have an effect on the economy?
List and explain the different leadership styles : List and explain the different leadership styles. Create two different situations and compare how the each of the leadership style with solve or counter the situation.
Do given conditions happen often in real world forecasting : Identify several techniques that can be used instead of constant growth forecasting.-  Which techniques do you think would be the most accurate? The most costly?
Find the capital-labour ratio and also the output : a). Find the capital-labour ratio, and also the output, consumption and investment on a per capita basis in the steady state equilibrium. b). Is a government policy that raises the saving rate to 40% socially desirable? Explain your answer with r..
What are the purposes of a financial control system : Why are computerized forecasting models playing an increasingly important role in corporate management?- What are the purposes of a financial control system?
Discuss about the the iras and plos cycles of violence : What role do you think these incidents had in precipitating the IRA's and PLO's cycles of violence?
What is the most important line of the cash budget : Considering all the information in projected financial statements, why do organizations need a cash budget?- Does the cash budget require an extensive knowledge of accounting principles?
Write article summary - dignity of the nursing profession : NUR 504 Summarize Research Articles - The model summary selected for this paper is found in the textbook. This is a summary of a quasi-experimental study in which though there is a comparison group;

Reviews

Write a Review

Business Management Questions & Answers

  The iso 9000 series of standards is generic in scope

The new Minister of Health wants to improve service delivery in the public hospitals and wants to implement ISO standards. What are the benefits of ISO Registration. The ISO 9000 series of standards is generic in scope. Briefly describe the thre..

  What are the risks to achieving your objectives

What are the inventory turns for each of the different categories of farm supplies as well as the overall turns (please use the COGS/AvgInv formula)? What kind of improvements can be made in inventory management and how?

  Examine the federal sentencing guidelines for organizations

Explain the events that led to each of these regulatory measures - Illustrate the impact these laws have on business ethics (substantiate with examples).

  Market research case analysis sperrymaclennan architectsi

market research case analysis sperrymaclennan architectsi need help with a 1050- to 1400-word case study analysis of

  Hire the profit-maximizing amount of labor

A company sells pencils in a perfectly competitive product market and hires workers in a perfectly competitive labor market. Assume the market wage for workers is $ 150 per day. a) What rule should this company follow to hire the profit-maximizing ..

  How to change the polarized status quo

Recommends how to change the polarized status quo, deal with the collective stress in the aftermath of the campaign and election, and begin changing the political culture toward what the founding fathers had in mind

  Manager of a small custom producer

Suppose you are the manager of a small custom producer of equipment used in various process industries such as chemicals and beverages. Each piece of equipment is customer designed from customer specifications. The process generally consists of fi..

  Recruiting and staffing

Jean Phillips and Stanley Gully illustrate unfair discrimination occurs when employment decisions are based on factors such as race, sex, religion, ethnicity, or a person's disabilities.

  The relevance of sponsorship in global marketing strategy

What is the relevance of sponsorship in global marketing strategy?- Analyse a win-win example of sponsorship strategy.

  Wireless technologies-pros and cons for a company

The pros and cons for a manufacturing company to use Smartphones, and RFID

  How would you address the ceo on the fairness

Regardless of the format you select, your final project must answer the following questions: If you were the CEO, how would you justify the ratio? (2 pages OR 6-8 slides) If you were an employee, how would you address the CEO on the fairness and ethi..

  B2b companies comes to social media

Maersk Line are one of the most famous B2B companies comes to Social media when it. Based on our discussion in class analyse their use of multiple channels and suggest improvements.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd