Depreciation is 5 percent of capital in both countries and, Ask an Expert

Economics

Q. Assume that two countries both have per-worker production function y = k1/2, neither has population growth or technological progress, depreciation is 5 percent of capital in both countries and country A saves 10 percent of output whereas country B saves 20 percent. If A starts out with a capital-labour ratio of 4 and B starts out with a capital-labour ratio of 2, in long run:

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9307526

Have any Question?Write your Review or question?

Related Questions in Business Economics

A local postal carrier distributes first-class letters

A local postal carrier distributes first-class letters, advertisements, and magazines. For a certain day, she distributed the following number for each type of item. Delivered to First Class Letters Ads Magazines Home ...

What type of monopoly is sydney water describe the main

What type of monopoly is Sydney Water? Describe the main characteristics of this monopoly type in general and in relation to Sydney Water.

Imagine that in the consumption function autonomous

Imagine that in the consumption function, autonomous consumption is equal to 17.5, and the marginal propensity to consume is equal to 0.69. If current income (or output) is equal to 253.4, what is the value of aggregate ...

Ernies utility function isnbspuxnbspy 32xy he has 10 units

Ernie's utility function is U ( x , y ) = 32 xy . He has 10 units of good x and 8 units of good y. Waldo's utility function for the same two goods is U ( x , y ) = 3 x + 5 y . Waldo has 9 units of x and 13 units o ...

The widths of 86 randomly selected doors were found to have

The widths of 86 randomly selected doors were found to have a variance of 1.68. Construct the 90% confidence interval for the population variance of the widths of all doors in this factory. Round your answers to two deci ...

Out of 140 randomly selected kindergartners who were

Out of 140 randomly selected kindergartners who were surveyed, 32 said that pancakes are their favorite breakfast food. Construct and interpret a 90% confidence interval for the percentage of all kindergartners who say p ...

What effect does the teacher have on creating a learning

What effect does the teacher have on creating a learning environment with little to no behavior problems?

What is the central limit theorem why does it make the use

What is the Central Limit Theorem? Why does it make the use of the common inferential tools possible even if the raw data is not distributed normally?

Suppose that a firm that produced buttons had a production

Suppose that a firm that produced buttons had a production function given by: q= 4L 0.5 K 0.5 . The firm has 16 units of capital in the short run. Determine the amount of labor required to produce 64 units of output ...

My null hypothesis relates to shipping costs being higher

"My null hypothesis relates to shipping costs being higher for critical orders than low priority orders. So u1 - u2 less than or equal to 0 is null hypothesis and right-tailed t-test. What I am unsure of is which is the ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert