ECON 214 InQuizitive Assignment 5 solutions complete answers

ECON 214 InQuizitive Assignment 5 solutions complete answers 

 

Fill in the blank to complete the sentence.

 

Diminishing marginal product sets in after the –ladder.

 

Consider input X as one factor leading to output Y. What is the marginal product of X?

 

Fill in the blanks to complete the passage about the key difference between Nogales, Arizona, and neighboring Nogales in the Mexican state of Sonora.

 

The two cities are in the same location and have similar – and geography, but the U.S. city has a – level of education, – infant mortality, and better roads. The key difference is – that promote security of people and property on the one side but not the other.

 

 

We can use the marginal product of resources to analyze the relationship between capital and output in an economy. Drag each word or phrase to the appropriate blank.

 

In the – production function, the slope of the function corresponds to the –. If the slope is –, we know that output is increasing. As the slope declines, that is a sign of – marginal product.

 

Fill in the blanks to complete the passage about patents.

 

A patent gives the holder a – monopoly. That time period allows – to profit off the technology without others being able to do the same, which is an incentive that encourages –.

 

Apply the appropriate label to each specific institution that fosters economic growth.

 

Seth is trying to decide how many workers is the optimal amount at his factory, which produces artisan-crafted grooming products. He observes the following:

 

·  When there is one worker, 10 hairbrushes are produced daily.

·  When there are two workers, 16 hairbrushes are produced daily.

·  When there are three workers, 20 hairbrushes are produced daily.

 

What is the marginal product of the third worker?

 

Drag each word to the appropriate blank space to complete the passage.

 

The original Solow growth model assumed that technology growth is –, which means that innovation is –the economy.

 

Which steps did Chile take to reform its economy and increase its growth rate?

 

 

Assuming the blue production function (F1) is the initial state of a country’s economy, click on the production function after a surge in the nation’s technology sector, for instance, due to government funding.

 

What are some of the main elements of the original Solow growth model?

 

Place in order the events that start with the right institution being put in place and end with growth.

 

Macroeconomic theories evolve over time. They both shape and respond to real-world circumstances.

 

We can use the total output to determine what is happening with the marginal product, or we can use the marginal product to analyze total output. Drag each word or phrase to the appropriate blank space in order to correctly complete the table.

 

Place each item in its correct location in the diagram to illustrate the change of events that starts with a growth-friendly institution and ends with economic growth.

 

 

Beginning with the observation of real-world events, put the following events in the correct order to describe the continuous interplay between economic theory and the real world.

 

Select all the events that could result in a nation’s increasing the slope of its entire production function.

 

Which of the following are true for the production function with regard to marginal product?

 

If data links connecting different parts of the United States were to fail, GDP would fall. If, on the other hand, the network of state-of-the-art, high-speed connections were doubled in size, what would happen?

 

Drag each development in the economy to the graph that depicts its effect.

 

The focus of macroeconomics changes over time, depending on the state of the economy. Fill in the blanks to complete the passage.

 

After the –, the primary focus of macroeconomics shifted to –, that is, to short-run – of the economy. Toward the end of the last century, the focus returned to –growth.

 

 

What is one of the ways an institution can reduce the expected payoff of investment and production?

 

Modern growth theory built upon the Solow model by focusing on what fundamental contributor to economic growth?

 

Chile’s per capita GDP rose from $7,709 to $20,208 over 23 years (1985–2008). Which of the following factors is included in modern growth theory but not in the Solow model?

 

What key assumption of the early Solow model can be seen in this graph depicting the historical relationship between capital investment and real GDP growth?

 

Apply the correct label to each level of capital investment on the aggregate production function to illustrate one of the important implications of the Solow model.

 

Based on the graph, which of the following statements are true?

 

 

Match the economist to the correct description.

 

In this economy, ladders are used to acquire bushels of fruit hanging from trees. The graph shows the relationship between ladders, a factor of production, and output measured in bushels of fruit. Match the size of the marginal product to the corresponding section on the graph.

 

How does the Solow model explain technological change?

 

Investment can be positive when net investment is zero.

 

Match the terms with the correct definitions.

 

Drag each word to the appropriate blank in order to complete the passage about gross domestic product.

 

The aggregate production function describes the relationship among a nation’s physical capital, – capital, and –resources and its –, quantified as gross domestic product.

 

 

Select the key determinants of economic growth, according to current theory.

 

Assuming the blue production function (F1) is the initial state of a country’s economy, drag each label to the appropriate curve.

 

What factors must be in place for voluntary investment and production to naturally occur?

 

When technological advances occur in an economy, the production function is changed because capital becomes more productive.

 

Private property rights are a key promoter of economic growth.

 

Place in order the events in the evolution of the Solow growth model.

 

Robert Solow believed that over time, growth in developing nations would increase and growth in developed nations would slow down.