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Otrada [13]
2 years ago
6

Consider the economies of Hermes and Gobbledigook, both of which produce gaggles of gop using only tools and workers. Suppose th

at, during the course of 50 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same.
Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2014 and 2034.
Year
Hermes
Physical Capital Labor Force Output Productivity
(Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker)
2014 11 30 3,000
2034 15 30 3,600
Year
Gobbledigook
Physical Capital Labor Force Output Productivity
(Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker)
2014 8 30 2,400
2034 12 30 3,600
Initially, the number of tools per worker was higher in Hermes than in Gobbledigook. From 2014 to 2034, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a (larger or smaller)?? amount than productivity in Gobbledigook. This illustrates the concept of (brain drain or increasing return or inward oriented growth or diminishing returns or constant return?)??? , which makes it (easier or more difficult ??) for countries with low output to catch up to those with higher output.
Business
1 answer:
Pavel [41]2 years ago
8 0

The productivity (in terms of output per worker) of the economies of Hermes and Gobbledigook can be computed as follows:

1. Hermes

           Physical Capital    Labor Force    Output     Productivity

Year  (Tools per worker)    (Workers) (Gaggles   (Gaggles per

                                                                  of gop)           worker)

2014            11                         30              3,000      100 (3,000/30)

2034           15                        30              3,600         120 (3,600/30)

2. Gobbledigook

           Physical Capital    Labor Force    Output     Productivity

Year  (Tools per worker)    (Workers) (Gaggles   (Gaggles per

                                                                  of gop)           worker)

2014               8                       30              2,400           80 (2,400/30)

2034             12                      30               3,600         120 (3,600/30)

3. The 4-unit change in capital per worker causes the productivity in Hermes to rise by a <u>smaller</u> amount (20%) than the productivity in Gobbledigook (50%). This illustrates the concept of diminishing returns, which makes it easier for countries with low output to catch up to those with higher output.

<h3>What is the law of diminishing marginal returns?</h3>

The law of diminishing returns states that a developed nation's growth rates tend to slow as the economy matures, enabling developing nations to catch up with the former's growth.

Learn more about productivity and diminishing marginal returns here: brainly.com/question/11148440

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Answer:

Check the following calculations

Explanation:

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now

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Billy Luker made several stock sales during 2020. Determine the net capital gain or loss for the following transactions: Date Pu
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Answer:

The correst option is b. $3,000 net long-term capital gain and $1,000 net short-term capital loss.

Explanation:

Note: This question is not comple and the data in it are merged together. The complete question withe sorted data are therefore provided before answering the question as follows:

Billy luker made several stock sales during 2018. determine the overall result of the following transactions:

Date Purchased       Cost               Date Sold            Sales Price

       1-1-20               $4,000                6-2-20                 $6,000

       7-6-19               10,000                 7-7-20                  14,000

       7-6-19              20,000                 7-6-20                  17,000

       4-3-19                5,000                 6-2-20                   4,000

a. $2,000 net short-term capital gain.

b. $3,000 net long-term capital gain and $1,000 net short-term capital loss. c. $2,000 net long-term capital gain.

d. $4,000 net long-term capital gain and $2,000 net short-term capital loss.

The explanation to answer is now given as follows:

Step 1: Calculation of net long-term capital gain/loss

Gains and losses that occurred from the sale or exchange of capital assets that are held for more than one year are referred to as long-term capital gains and losses.

From the question, the second and fourth stocks are held for more than one year and they are therefore long-term sales. Therefore, we have:

Long-term capital gain from the second stock sales = Sales Price – Cost = $14,000 - $10,000 = $4,000

Long-term capital loss from the fourth stock sales = Cost – Sales price = $5,000 - $4,000 = $1,000

Net long-term capital gain = Long-term capital gain from the second stock sales - Long-term capital loss from the fourth stock sales = $4,000 - $1,000 = $3,000

Step 2: Calculation of net short-term capital gain/loss

Gains and losses that occurred from the sale or exchange of capital assets that are held for one year or less are referred to as short-term capital gains and losses.

From the question, the first and third stocks are held for one year or less and they are therefore short-term sales. Therefore, we have:

Short-term capital gain from the first stock sales = Sales Price – Cost = $6,000 - $4,000 = $2,000

Short-term capital loss from the third stock sales = Cost – Sales price = $20,000 - $17,000 = $3,000

Net short-term capital loss = Short-term capital loss from the third stock sales Short-term capital gain from the first stock sales = $3,000 - $2,000 = $1,000

Conclusion

Therefore, the correct option is b. $3,000 net long-term capital gain and $1,000 net short-term capital loss.

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Answer:

Uh, demand is wanting a thing and quantity demand is wanting more of that thing?

Explanation:

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