Econ9.27.10

Econ9.27.10 - Assignment 5 Hayek Rodrik Assignment 5 1.GDP...

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Assignment 5 Hayek Rodrik Assignment 5 1.GDP growth rate and industrial growth rate is very similar. Should be an upward sloping relationship. 2.Physical capital makes all the difference. Industrial shares in GDP: higher for agriculture, lower for industrial, equal for services. Capital stock is the trick. 8.a. ((60-35)/2)*466,667=5,833,337.50 b. 35*466,667=16,333,345 after: 45*280,000=12,600,000 c. Consumer surplus after tariff (60-45/2)*280,000=2,100,000 d. Total Loss: CSloss=A-C=5833,337.5-2100,000=3,733,338 e. Government: (280,000-186,667)*10=933,330 f. Producer Surplus: problem, no number for intercept between Sd and y axis. So we use extra producer surplus: 10*168,000+(.5*10(186,667-168,000)=1,733,335 g. Deadweight loss: your answer is correct h. It should be exactly equal. Should create positive externalities 9. positive externalities: On the job training. People quit, taking the training they receive and apply it to other jobs. Don’t pay for the training. CH. 10
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Econ9.27.10 - Assignment 5 Hayek Rodrik Assignment 5 1.GDP...

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