User Account

All Pages

Lewis-economy-labor demand curve

Assignment Help Business Economics
Reference no: EM133235606

In a Lewis-economy, labor demand curve is given by W=K-2L

In year 1, K (capital stock) is 15. Essentially an unlimited supply of labor is available at a wage of 5.

Capitalists save 60% of their income and invest. There is no depreciation.

In year 1:

A. How much do the works as a while earn?

B. How much do the capitalists earn?

C. What is the national income (only in the industrial sector)?

In year 2, when 60% of capitalists income from year 1 is invested:

A. How much do the works as a while earn?

B. How much do the capitalists earn?

C. Do you think the Lewis development model is moving in the correct direction in this case?

Reference no: EM133235606

Questions Cloud

True value of household economy : Official GDP statistics do not attribute any value to unpaid work. how much does this error underestimate the true value of your household's "economy"?
Disadvantages of emergency management : What are the disadvantages of Emergency Management being hosted/fostered/borne from the Civil Defense field?
Compute descriptive statistics for data : Compute the descriptive statistics for the data and comment on the results. Test for stationarity of the variables and comment on the results
Kinds of noneconomic trade-offs : What kinds of noneconomic trade-offs could be modeled with a production possibilities frontier?
Lewis-economy-labor demand curve : In a Lewis-economy, labor demand curve is given by W=K-2L. Capitalists save 60% of their income and invest. How much do the capitalists earn?
Conceptual framework social media application : What would comments look like on Theoretical or Conceptual Framework Social Media Application in Agriculture Extension Programming for Small Scale Rural Farmers
Social media application in agriculture extension : What does a peer review look like for Social Media Application in Agriculture Extension Programming for Small Scale Rural Farmers:
What factors have contributed to the instability : What factors have contributed to the instability? How would Europe's economy look like if nothing is done in Ukraine?
How important is forecasting : Using Pizza as an example How important is forecasting? What impact of pricing or other factors like tariffs have on the business.

Reviews

Write a Review

Business Economics Questions & Answers

  Excess reserves-maximum checkable-deposit expansion

Give an equation that shows the relationship between excess reserves, maximum checkable-deposit expansion, and the monetary multiplier.

  Demand and the allocation of resources

Explain why there is a close relationship between supply, demand and the allocation of resources.

  Human capital theory predicts

Human capital theory predicts that women who plan on interrupting their work career will:

  Internet search for a woman

Complete an Internet search for a woman who made significant contributions to the Renaissance or Baroque era.

  Change in the quantity of money

If the Bank of Canada sells $400 million worth of bonds to the public in an open market operation, what is the change in the quantity of money

  Graph the bens consumption function

Graph the Bens consumption function also find their households marginal propensity to consume.

  How is the integration accomplished

Managerial Economics is often said to help the business students integrate the knowledge gained in other courses, How is the integration accomplished?

  Graph new budget constraint

Suppose that we want to improve her economic conditions with an income guarantee of 300 dollars Graph her new budget constraint.

  Online based multinational sales corporation

You are the project lead hired to develop the IT systems aspects of a Online based multinational sales corporation.

  Calculate cournot equilibrium-levels of each firm output

Suppose now that a second firm enters the market. Let Q1 be the output of the first firm, yours, and Q2 the output level of the second firm. Market demand is now given by Q1 + Q2 = 53 – P or inverse demand can be expressed as P = 53 – Q1 – Q2. Calcul..

  The additional output produced by a firm

The additional output produced by a firm as a result of hiring another worker is called the marginal product of labor. The amount by which a firm’s revenue will increase as a result of hiring one more worker is called the marginal revenue product of ..

  Reason for the decrease in the unemployment rate

The unemployment rate in November 2011 came down to 8.6% from 9.0% in the previous month. What could have been a possible reason for the decrease in the unemployment rate even when many new jobs were not created in the economy at that time?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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