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Consider the recipient's perspective in the global impact of development versus relief aid. Suppose a fixed amount of aid b is given to each worker in a developing country and that donors commit to continue these aid flows indefinitely.
Compare:
Plan 1: b is added to investment
Plan 2: b is added to consumption
Use the Solow growth model to evaluate these plans in terms of their impact on LR steady-state consumption. Assume aid flows do not change people's behavior except as specified in the Solow Growth Model, the domestic savings rate is significantly below the Golden Rule, and there is no technological progress. Use a well-labeled graph to answer this question. Indicate the steady-state levels of k, y, and c under both plans (k1, y1, c1 and k2, y2, c2). If the relative sizes on the graph are not accurate, clarify which is actually bigger (i.e., c1 or c2). HINT: think about shifting sf(k) up by a constant amount b.
Suppose that John takes this semester only two courses, math and economics. He allocates his studying time between the two. Let M and E stand for the number grade in math and in economics, respectively. Provide a brief economic interpretation of the ..
Compute how many acres, hectares each person wold occupy if all U.S. residents.
Ashley works for McKennel and Associates, a large business consulting firm. ABC Company has developed, according to industry sources, a new process of building low-emission, high mileage gas engines for automobiles. XYZ, a competitor of ABC, hires As..
Consider the following model of demand for insurance (identical to that studied in class). Risk-averse individuals maximize expected utility of wealth where wealth is random due to a loss L, that occurs with probability π. It is assumed that insuranc..
According to the structure-conduct-performance framework, which of the following is not a characteristic of market structure
each price rise reflected a reduction of the silver in the coins. Discuss critically.
Given the number of successful prosecutions being brought, whether she will reform the Welfare of Animals Act 2011
Describe the impact of a payroll tax on wages and employment in a competitive industry. Why is part of the tax shifted to workers? What is the deadweight loss of the payroll tax?
The Port Authorities of New York and New Jersey estimate that the annual net revenues for the George Washington Bridge (GWB) will total $13M by the end of this year (t=1). At the end of three years (t=4) you expect a toll increase of 10%. Revenues wi..
Find the equilibrium market quantity and price if the market demand is Qd = 320 - 30p. Part four - how much output will each firm produce?
A production function establishes the relationship between: Which of the following inputs can be changed in the short run? Which of the following statements is true of the long run?
The following graph shows the market for loanable funds. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. This change in the tax treatment of saving causes the equilibrium inte..
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