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Rufina [12.5K]
3 years ago
12

Consider a numerical example using the Solow growth model. Suppose that F(K,N) = K^ 0.5N^ 0.5, with d = 0.1, s = 0.2, n = 0.01,

and z = 1, and take a period to be a year.
(a) Determine capital per worker, income per capita, and consumption per capita in the steady state.
(b) Now, suppose that the economy is initially in the steady state that you calculated in part (a). Then, s increases to 0.4.
i. Determine capital per worker, income per capita, and consumption per capita in each of the 10 years following the increase in the savings rate.
ii. Determine capital per worker, income per capita, and consumption per capita in the new steady state.
iii. Discuss your results; in particular comment on the speed of adjustment to the new steady state after the change in the savings rate, and the paths followed by capital per worker, income per capita, and consumption per capita.

Business
1 answer:
Sliva [168]3 years ago
4 0

Find the solution in the attachments

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Selected comparative financial statements of Korbin Company follow:
Oksanka [162]

Answer:

Korbin Company

Selected Comparative Financial Statements:

1. KORBIN COMPANY  Comparative Income Statements

For Years Ended December 31, 2017, 2016, and 2015

                                      2017         %           2016        %            2015        %

Sales                         $515,770    100%   $395,122  100%   $274,200   100%

Cost of goods sold    310,494      60%    250,507    63%      175,488     64%

Gross profit               205,276      40%      144,615    37%        98,712     36%

Selling expenses        73,239       14%       54,527    14%         36,194     13%

Admin.  expenses       46,419        9%        34,771      9%        22,759      8%

Total expenses         119,658       23%      89,298     23%       58,953     21%

Income before taxes  85,618       17%        55,317      14%       39,759     15%

Income taxes             15,925         3%        11,340        3%          8,071       3%

Net income             $69,693        14%   $43,977        11%      $31,688     12%

2. KORBIN COMPANY

Balance Sheet Data in Trend Percents

for December 31, 2017, 2016, and 2015

                                                  2017            2016             2015

Assets

Current assets                        100.00 %          78%             105%  

Long-term investments          100.00            500%          3,690%

Plant assets, net                     100.00             107%             64%

Total assets                            _124__%       _121_ %       100.00 %

Liabilities and Equity

Current liabilities                    _104_ %       _103__ %     100.00 %

Common Stock                       100.00           100%             75%

Other paid-in capital               100.00           100%            66%

Retained earnings                  100.00             92%            84%

Total liabilities and equity      _124_ %         _121_ %      100.00

Explanation:

a. Data:

KORBIN COMPANY

Comparative Balance Sheets

December 31, 2017, 2016, and 2015

                                                 2017             2016             2015

Assets

Current assets                    $53,867       $42,145        $56,338

Long-term investments            0                   500            3,690

Plant assets, net                 100,040       106,805           63,791

Total assets                      $153,907     $149,450        $123,819

Liabilities and Equity

Current liabilities               $22,470     $22,268         $21,668

Common stock                     71,000        71,000           53,000

Other paid-in capital              8,875          8,875             5,889

Retained earnings               51,562        47,307           43,262

Total liabilities & equity  $153,907    $149,450         $123,819

b) In an income statement vertical analysis, each line item is calculated as a percentage of the sales, which is itself 100%.  This enables the proportional analysis of all the items to be computed about their financial performance in relation to the sales for the period.  It can help management to dictate unusual items, errors, and other outliers.

c) The balance sheet trend analysis shows whether the entity's financial position is improving or not in relation to the base period.  Each item is compared horizontally across periods.  The calculation of trend uses the amount in the non-base year and divides it by the amount of the base year x 100.

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3 years ago
Vivian worked as a manager at her company. She was asked to order a few cars that would be used by company employees. Which best
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To ensure that her company is being socially responsible, Vivian should ensure that the cars are environmentally friendly. Being socially responsible means you do what is best for planet, people, and profits. In this case, taking care of the planet means choosing the car that is the most environmentally friendly.

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Which organization has the highest market dependence? Group of answer choices a chain of rapid-service oil change shops. a manuf
pashok25 [27]

Answer:

The correct answer is letter "D": company that specializes in making replacement tiles for the space shuttle.

Explanation:

Market-dependent industries are those whose production relies on the manufacturing of another institution. This is a threat for the entity since if the other producers fail, the entity is likely to follow the same path. The situation is even worse when the manufacturing company produces rare or uncommon goods.

Therefore, <em>a firm producing replacement tiles for space shuttles is highly market-dependent since a few organizations worldwide require spare parts for space tiles, which is not a common product traded in the market.</em>

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The value of an asset is determined by discounting the future cash flows generated by the asset using the:
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The value of an asset is determined by discounting the future cash flows generated by the assets using the DISCOUNTED CASH FLOW ANALYSIS. Dis counted cash flow analysis is used to value projects, assets or companies using the concept of the time value of money. This method is used to determine the attractiveness of an investment.
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What is a special event that is for people outside a company, such as customers, potential customers, and the public? A. Product
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The answer to this question is D
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