Markets are classified as either

If the Japanese production function is Cobb–Douglas with capital share 0.3, output growth is 3 percent per year, depreciation is

miss Akunina [59]

Answer: The saving rate is 0.30

Explanation:

The Golden Rule savings rate is referred to as the rate of savings which maximizes steady state level or growth of consumption.

Let k be the capital/labour ratio (i.e., capital per capita), y be the resulting per capita output ( y = f(k) ), and s be the savings rate. The steady state is referred to as a situation in which per capita output is unchanging, which implies that k be constant. This requires that the amount of saved output be exactly what is needed to one quip any additional workers and two replace any worn out capital.

In a steady state, therefore: sf(k)=(n+d)k

Growth rate of output =3%

Depreciation rate= 4%

Capital output ratio is (K/Y)

= 2.5

Begin the steady state condition:

S= ( σ + n + g) (k/Y)

S= (0.03+0.04) (2.5)

S= 0.175

Golden rule steady state

MPK= (0.03+0.04)= 0.07

Capital output ratio=

K/Y= Capital share / MPK

K/Y= 0.3/0.07

K/Y= 4.29

In the golden state, the capital output ratio is equal to 4.29 in comparison to the current capital ratio 2.5.

The saving rate consistent with the steady growth rate

S= ( σ + n + g) (k/Y)

S= (0.03 +0.04) (4.29)

S= 0.30

The saving rate that is consistent with the steady growth rate is 0.30

6 0

3 years ago

The consumer price index (CPI) can be used to measure inflation. There are potential problems with this process though that can

DIA [1.3K]

Answer:

a. Overstates Inflation.

In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.

b. Understated Inflation

Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.

c. Overstates Inflation

In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.

d. Accurate representation of Inflation

In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.

6 0

3 years ago

Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first bond is issued at a deep di

I am Lyosha [343]

Answer:

Explanation:

a)

The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.

b)

If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.

c)

Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant

3 0

3 years ago

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Deter

Digiron [165]

Date Activities Units Acquired at Cost Units Sold at Retail

May 1 Beginning Inventory 150 units at $10.00

5 Purchase 220 units at $12.00

10 Sales 140 units at $20.00

15 Purchase 100 units at $13.00

24 Sales 90 units at $21.0

Answer:

Value of closing inventory =$1290

Explanation:

Under the LIFO inventory system units of inventory are priced using the price of the most recent batch purchased and this continues in turn.

The value of closing inventory = Total cost of inventory available for sales - cost of goods sold

The cost of inventory sold would be determined as follows:

140 units :140 × $12=1,680

90 units : 90× $13 = 1,170

Total cost of goods = 1,680 + 1,170 = 2,850

Total cost of inventory available for sales would be equal to :

(150 × $10.00) + (220 ×$12.00) = 4,140

The value of closing inventory = Total cost of inventory available for sales - cost of goods sold

4,140 - 2,850 = $1290

Value of closing inventory =$1290

7 0

3 years ago

How can I start for drug design to end up having a career as a drug designer?

MatroZZZ [7]

Answer:

Inorder to start for drug design to end up having a career as a drug designer, one needs to follow the processes below;

1. Discovery

2. Product characterization

3. Formulation, delivery, packaging development

4. Phamacokinetics and drug disposition

5. Preclinical toxicology testing and IND application

6. Bioanalytical testing

7. Clinical trials

Explanation:

Drug design is a method in which one develops new medicinal drugs based on the knowledge of a biological target.

The knowledge of the biological target is it's molecular make up. Once the molecular information about the target has been determined, the drug is developed to compliment the bio-molecular properties of the target.

The bio-molecular properties usually considered are the shape and the charge.

There are seven major processes to complete drug design. They are as follows;

1. Discovery

This starts with a target identification where the biochemical relationship involved in the disease condition. The interaction between a drug candidate and the drug target is determined using rigorous screening processes. A lead compound is chosen after effective review.

2. Product characterization

The candidate molecule is then classified and its characteristics noted.

3. Formulation, delivery, packaging development

Formulations for proper drug delivery parameters should be determined. This will include all parameters of shipment and storage to ensure proper and safe delivery.

4. Phamacokinetics and drug disposition

Pharmacokinetics(Pk) offer useful feedback to the formulation scientists. Pk offers parameters such as area under the curve and the maximum concentration of the drug in the blood and the time at which the maximum concentration is reached.

5. Preclinical toxicology testing and IND application

This involves the testing of the bio-activity, safety and efficacy of the formulated drug product

6. Bioanalytical testing

This is important for proper characterization of the molecule

7. Clinical trials

The clinical trial are conducted by grouping them into three types, majorly;

human pharmacology, therapeutic exploratory, and therapeutic confirmatory

6 0

3 years ago