This paragraph provides the context for the following question: According to one estimate, between 1870 and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
This paragraph provides the context for the following question: "According to one estimate, between 1870 and 1910 emigration lowered the Swedish labour force by 20 per cent, and increased real wages by 7.5 per cent; the equivalent figures were 24 per cent and 10 per cent for Norway, 39 per cent and 28 per cent for Italy, and no less than 45 per cent and 32 per cent for Ireland. Industrialisation and the demographic transition eventually allowed Europe to definitively break free from the Malthusian trap. But in the interim, emigration gave Europe vital breathing space." (from Kevin O'Rourke "Migration and the Escape from Malthus," in Critical Quarterly, Vol. 57(3), 93-97). "} Consider a hypothetical economy whose production function and subsistence requirements are as described in the table below. Draw exclusively upon your understanding of the Malthusian model of economic stagnation in order to address the following questions. Population 0 Production/Output 0 Subsistence Requirement 0 1 10 6 2 18 12 3 24 18 4 28 24 5 30 30 6 31 36 1. What would be the subsistence equilibrium level of the population and of the output per person at the long-term equilibrium of this economy? 2. Suppose that emigration reduces the population of the country by two units from the equilibrium level you identified at (1.). What would happen to the output per person as a result of the drop in population? 3. Absent any further changes, would the change in the output per person you described at (2) persist over the long-term? This paragraph provides the context for the following question: "According to one estimate, between 1870 and 1910 emigration lowered the Swedish labour force by 20 per cent, and increased real wages by 7.5 per cent; the equivalent figures were 24 per cent and 10 per cent for Norway, 39 per cent and 28 per cent for Italy, and no less than 45 per cent and 32 per cent for Ireland. Industrialisation and the demographic transition eventually allowed Europe to definitively break free from the Malthusian trap. But in the interim, emigration gave Europe vital breathing space." (from Kevin O'Rourke "Migration and the Escape from Malthus," in Critical Quarterly, Vol. 57(3), 93-97). "} Consider a hypothetical economy whose production function and subsistence requirements are as described in the table below. Draw exclusively upon your understanding of the Malthusian model of economic stagnation in order to address the following questions. Population 0 Production/Output 0 Subsistence Requirement 0 1 10 6 2 18 12 3 24 18 4 28 24 5 30 30 6 31 36 1. What would be the subsistence equilibrium level of the population and of the output per person at the long-term equilibrium of this economy? 2. Suppose that emigration reduces the population of the country by two units from the equilibrium level you identified at (1.). What would happen to the output per person as a result of the drop in population? 3. Absent any further changes, would the change in the output per person you described at (2) persist over the long-term?
Expert Answer:
Answer rating: 100% (QA)
we can analyze the hypothetical economy using the Malthusian model of economic stagn... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
Posted Date:
Students also viewed these economics questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Since Ryanair DAC's2 emergence as an upstart challenger to the Aer Lingus Ltd.-British Airways plc duopoly in the late 1980s, it had been both a consumer champion and antagonist; a technological...
-
On August 31, 2014, Nina Herrera borrowed $5,000 from Second State Bank. Herrera signed a note payable, promising to pay the bank principal plus interest on August 31, 2015. The interest rate on the...
-
The current price of a stock is $65.88. If dividends are expected to be $1 per share for the next five years, and the required return is 10%, then what should the price of the stock be in 5 years...
-
A double-glazed window has two panes of glass separated by an air space, Fig. 14-20. (a) Show that the rate of heat flow through such a window by conduction is given by where k1, k2, and k3 are the...
-
As you are standing on the platform, a boy in a train moving to the right extends his hand outside the window and releases a ball. In what direction is the ball moving according to (a) you (b) the...
-
Sea Horse Inc., a software development firm, has stock outstanding as follows: 80,000 shares of 1% preferred stock of $15 par, and 200,000 shares of $65 par common. During its first four years of...
-
1 Explain briefly about six sigma and capacity maturity models? 2 Explain about the contemporary management practices taking place in Indian business model? 3 4 What is performance management?...
-
On December 31, 2023, Zippy Car Company's Allowance for Doubtful Accounts had an unadjusted credit balance of $42,000. The accountant for Zippy has prepared a schedule of the December 31, 2023,...
-
A random sample of 75 observations from a population yielded the following summary statistics: Construct a 95 % confidence interval for the population mean m. x=1,270 x = 21,520
-
Find the probability that an exponentially distributed random variable X with mean 1/ = 8 will take on the values: (a) Between 2 and 7 (b) Less than 9 (c) Greater than 6 (d) Between 1 and 15
-
Leveraging excellent engineering, German machine toolmakers are world leaders in their industry. As Chinas industrialization takes off, they are often sought after in newly built factories that make...
-
Suppose the length of time a student waits to register for courses is distributed exponentially with a mean of 1/15 min. (a) What percentage of students will register within 10 min? (b) What...
-
Suppose you take an ordinary deck of 52 cards randomly select five cards without replacement. How many different combinations of sample car can you have?
-
1. Discuss the author's role in the Black Power Movement. 2. What is the main thesis of the book? 3. Provide an analysis of three main themes developed in the book. 4. What is the relationship of the...
-
The manager for retail customers, Katie White, wants to hear your opinion regarding one business offer she has received from an entrepreneur who is starting a mobile phone app called Easy Money. The...
-
Lance Novak recently acquired Chiefs Loft, a restaurant in an inner-city suburb of Brisbane. Past records show the restaurant has generally experienced quite good customer numbers. While conducting...
-
The Australian government has contracted with alternative energy industry organisations to develop new energy technologies. These contracts are sometimes based on cost. Because these organisations...
-
At recent management meeting the following statement was made by the Chief Operating Officer: this project is strategic for the firm and therefore non-discretionary. Briefly comment on this statement.
-
How does RoRo differ from LoLo?
-
A firm issues three-month commercial paper with a \($100,000\) face value and receives \($98,000.\) What effective annual rate is the firm paying for its funds?
-
What is the difference between transshipment and transloading?
Study smarter with the SolutionInn App