“Countries grow at different rates because they accumulate capital at different rates.” Is this true? Explain your answer. Since the Industrial Revolution‚ economists have attempted to explain why certain countries economies grow at greater rates than others. The post-Keynesian era saw the introduction of the Harrod-Domar model of economic growth. This model explained an economy’s growth rate by observing the level of saving and productivity of capital in the economy. The neo-classical Solow-Swann
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1 In response to this problem‚ defenders of the Traditional View argue that if we were able to take into account every confounding factor and sum them all‚ we would indeed get a perfectly accurate prediction‚ even if this is almost never a practical possibility. 2 If both premises are true‚ then they guarantee that the conclusion (3) must also be true‚ and what better explanation for a phenomenon could we expect than a demonstration of why the phenomenon is guaranteed to happen given the initial
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ECON 201: Introduction to Macroeconomics Midterm Exam 1: Answer Packet October 10‚ 2011 NAME: _________________________________ Circle your TA’s name: Circle your section time: Agustin 9 a.m. Brian 3 p.m. Meysam Directions: This test is in two parts‚ a multiple choice question part and a short-answer part. Use this answer packet to complete the exam. Calculators are permitted. Books‚ notes‚ reference materials‚ etc. are prohibited. Good luck! Part 1: Referring to the questions in the Multiple
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the prices of scarce goods must rise due to excess demand D. choices must be made and tradeoffs will occur 3. The ’no-free-lunch’ principle is another name for the A. cost-benefit principle B. the scarcity principle C. the ceteris paribus principle D. the marginal (not average) principle 4. You currently go to the gym three times each week. Each visit costs you $15 and you get $90 worth of benefits from your current weekly gym routine. Given this information A. you should
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The global financial crisis has revealed the need to rethink fundamentally how financial systems are regulated. It has also made clear a systemic failure of the economics profession. Over the past three decades‚ most economists have developed and come to rely on models that disregard key factors—including the heterogeneity of decision rules‚ revisions of forecasting strategies‚ and changes in the social context—that drive outcomes in asset and other markets. It is obvious‚ even to the casual
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equilibrium model‚ firms would want to supply more than consumers demanded at the price of $3. The entire supply curve would have to shift to the left until the market clearning price is at $3 to fulfill their condition. This is certainly not ‘ceteris paribus’. The standard demand-supply model assumes a competitive market structure. That is firms are price-takers. They are not capable of fixing price to restrict supply unless they collude or become a monopoly to which is not implied by the model. Even
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ECONOMICS 110/112 Assignment #5/#2 2013/2014 Due Dates and Notes: • DUE: By Friday February 28‚ 2:00 PM. Completed assignments should be placed in the slot marked for your section in the white assignment collection box on the 2nd floor of Dunning Hall. Late assignments will not be accepted. • Use the Cover Page when submitting assignments. Place diagrams for particular questions with your answers to those questions. • Group Work: Maximum four per group‚ all students must be
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next most valuable alternative‚ or the value of the next best option. What you sacrifice. Example: if I wasn’t doing this macro assignment I would be watching Netflix. So I am sacrificing watching Netflix in order to do this assignment. b. Ceteris paribus - describes the effect of one variable on another‚ if all other variables that may affect the second variable are constant. Latin translation: all other variables are fixed. c. Marginal change-
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and explain why it holds. [3 marks] [TOTAL: 8 MARKS] Question 2 a. “As the price of oranges rises‚ the demand for oranges falls‚ ceteris paribus.” Explain. [3 marks] b. “The price of a bushel of wheat was $3.00 last month and $2.50 today. The demand curve for wheat must have shifted leftward between last month and today.” Discuss. [4 marks] c. Some goods are bought largely
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What explains rapid economic growth in Europe‚ 1945-1973? After the Second World War ranging in the period of 1939-1945‚ countries involved were faced with large amounts of destroyed physical property‚ as well as numerous deaths of civilians and soldiers. However‚ the hardships of the previous years of war and depression were replaced by rising living standards and increased opportunities.(Bohanon‚ 2012) This is because countries could now grow rapidly simply by repairing wartime damage‚ rebuilding
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