1.GDP growth rate and industrial growth rate is very similar. Should be an upward
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.
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.