Question: Suppose that there are two countries with different levels of total factor productivity, and that these differences exist because of barriers to technology adoption in

Suppose that there are two countries with different levels of total factor productivity, and that these differences exist because of barriers to technology adoption in the low-productivity country. Also suppose that these two countries do not trade with each other. Now, suppose that residents of each country were free to live in either country. What would happen, and what conclusions do you draw from this?

Step by Step Solution

★★★★★

3.49 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

From Figure per capita capital and per capita income will be higher in the country with h... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

362-B-E-M-E (2591).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Suppose that there are two countries in the world economy, countries I and II. The countries possess the following marginal propensities: MPCI = 0.7; MPMI = 0.1; MPCII = 0.8; MPMII = 0.2. There is no...

Draw a diagram to show that there are two tangent lines to the parabola y = x2 that pass through the point (0, - 4). Find the coordinates of the points where these tangent lines intersect the...

Suppose that there are shocks total factor productivity which cause aggregate output to fluctuate. What does this imply for the Friedman rule, that is, how should the central bank conduct monetary...

3. LO 1 Suppose that there are two countries with diferent levels of total factor productivity, and that these diferences exist because of barriers to technology adoption in the low-productivity...

Case Summary Read the Discussion Assignment 2-1 on p.34 of the text Technology Adoption by Small Manufacturers. Consider yourself as a health care leader in a small not-for-profit hospital. You have...

click to see the whole question In the Solow growth model, in the absence of total factor productivity growth, capital stock per worker converges to a steady-state level because O A. output per...

competing on productivity ARTICLE ANALYSIS For each article in the text that is assigned, you are to prepare an outline of the key concepts of the article. This can be in outline format, but should...

In a one-page paper, answer the following: What is the function of venture capital in the United States and why is it important and/or needed? Describe the seven constants that apply across any...

QUESTION 1 In the Solow growth model, in the absence of total factor productivity growth, capital stock per worker converges to a steady-state level because ________________. A.population growth is...

Following the war, Grandpa Frank was very bullish on the potential of the French market. He saw a country that would not only experience short-term growth through its rebuilding effort, but also...

Milliken uses a digitally controlled dyer for placing intricate and integrated patterns on manufactured carpet squares for home and commercial use. It is purchased for $325,000. It is expected to...

Assume that cans of Coke are filled so that the actual amounts have a mean of 12.00 ounces. A random sample of 36 cans has a mean amount of 12.19 ounces. The distribution of sample means of size 36...

A high debt - to - income ratio indicates: A lower risk of default for the lender. More equity than debt. Low borrowing costs for the individual or entity. A higher risk of default for the lender.

LO.6 On June 5, 2012, Dan purchased and placed in service a seven-year class asset costing $250,000. Determine the maximum deduction Dan can take on this asset.

Explain how credit market uncertainty affects the investment decision of the firm.

What is the governments budget constraint in the real intertemporal model? Can the government run a deficit or run a surplus in the current period?

What are the factors that shift the output supply curve?

Homework: Chapter 5 Homework Save Score: 0 of 2 pts 12 of 18 (5 complete) HW Score: 12.5%, 45 of 36 pts Problem 5-38 (similar to) Question Help (Compound interest with nonannual periods) a. Calculate...

Gary's Pipe and Steel company expects sales next year to be $1,110,000 if the economy is strong, $755,000 if the economy is steady, and $396,000 the economy is weak. Gary believes there is a 40...

Colson Company has a line of credit with Federal Bank. Colson can borrow up to $371,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as...