...except that one has a higher saving rate. According to the Solow-Swan growth model, in the steady state the country with the higher saving rate will have ______ level of total output and ______ rate of growth of output per worker as/than the country with the lower saving rate.| A)|the same; the same| B)|the same; a higher| C)|a higher; the same| D)|a higher; a higher| 2.|Examination of recent data for many countries shows that countries with high saving rates generally have high levels of output per person because:| A)|high saving rates mean permanently higher growth rates of output.| B)|high saving rates lead to high levels of capital per worker.| C)|countries with high levels of output per worker can afford to save a lot.| D)|countries with large amounts of natural resources have both high output levels and high saving rates.| 3.|The Golden Rule level of capital per worker is the steady state level of capital per worker with the highest level of:| A)|output per worker.| B)|capital per worker.| C)|savings per worker.| D)|consumption per worker.| 4.|In the Solow-Swan growth model of an economy with population growth but no technological change, if population grows at rate n, then the total stock of capital grows at rate ______ and total output grows at rate ______.| A)|n ; n| B)|n ; 0| C)|0 ; 0| D)|0 ; n| 5.|In the Solow-Swan growth model of an economy with population growth but no technological change, if population grows at rate n, total output...
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...Economic growth Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Growth is usually calculated in real terms, i.e. Inflation-adjusted terms, in order to obviate the distorting effect of inflation on the price of the goods produced. ( Wikipedia, 10th december 2012) Executive summary- Economic growth is the growth what every economy and country are desperate to achieve for the sake of the country’s population. The aim is produce more and goods in order to increase the standard of living simply by increasing the wages of mass population. Increasing standard of living is to provide quality food, better and better service and education, latest technology in order to ease everyday’s life. The expectation in order to achieve faster growth are usually are on the rise in the hope of building better and prosperous country. Economic growth is considered to be a positive to be a positive side of an economy but at what extent? A countries economic growth is visible by its infrastructure, urban development, globalization, higher education rate; create employment and higher wages for poor worker and many other positive changes. When the demand of economic growth there are a few who thinks of the negative effect it might have. There are many negative concerns about faster economic growth and this is environmental issues, sometimes...
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...Agriculture, services and manufacturing industries play a vital role in the development of the Indian economy. The IT outsourcing, software and call center/ BPO industries, in particular, have helped skyrocket India’s economic development in recent years. Economic development in India still depends on the various sectors that constitute the Indian economy – agriculture, services and manufacturing industries. India is rated as one of the top economies in the world in terms of purchasing power parity (PPP) of the gross domestic product (GDP) by leading financial entities of the world, such as the International Monetary Fund, the World Bank, and the CIA (as referenced in the CIA World Factbook). As far as agriculture is concerned, India is the second largest in volume of output. Certain related sectors of agriculture have played a major role in the development of the Indian economy by providing employment to a number of people in the forestry, fishing and logging industries. In 2009, the agricultural sector contributed 17.5% to the entire GDP, and more than 50% of the total labor force working in India is employed in the agricultural sector. Production volume has gone up in Indian agriculture at a consistent rate since the 1950s. Much of this improvement can be attributed to the five-year plans that were established for the development of Indian agriculture. Developments in irrigation processes, as well as various modern technologies used have contributed to the...
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...LIBERALIZATION ON ECONOMIC GROWTH OF DEVELOPING COUNTRIES: A CASE OF BANGLADESH ECONOMY Umme Humayara Manni1, Munshi Naser Ibne Afzal1 1 Universiti Brunei Darussalam, Faculty of Business, Economics and Policy Studies, Brunei. ABSTRACT The objective of this paper is to assess the impact of trade liberalization on Bangladesh economy between the periods 1980 to 2010. This research analyzes the achievements of the economy in terms of important variables such as growth, inflation, export and import after trade liberalization. The paper uses simple Ordinary Least Square (OLS) technique as methodology for empirical findings. The analysis clearly indicates that GDP growth increased consequent to liberalization. Trade liberalization does not seem to have affected inflation in the economy. The quantitative analysis also suggests that greater openness has had a favourable effect on economic development. Both real export and imports have increased with greater openness. Liberalization policy certainly improves export of the country which eventually leads higher economic growth after 1990s. The findings of this study can be an interesting example for trade liberalization policy study in developing countries. KEYWORDS Trade liberalization, economic growth, developing countries, Bangladesh economy, OLS technique, openness, export, import, inflation 1. INTRODUCTION Like many developing countries, the primary focus of policies in Bangladesh is to obtain high and sustainable growth. However, to achieve...
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...is most often synonymous with the progression and growth from lower economic status to that which is advanced it be of a community or country such that its productivity noticeably increases. Many scholars as such agree that growth in economic proficiency as is brought about by economic growth is a yardstick for development. It is on this particular premise that this paper shall endeavour to describe economic growth and further elaborate why it is considered a crucial element in defining development. In this light, the paper shall also attempt to highlight and explain the limitations of this approach in measuring development. Economic Growth- Defined As suggested above, economic growth is a factor in achieving development. An accurate description according to the IMF (2012) is that economic growth is a process that involves the increase in the amount of the goods and services produced by an economy over time which is conventionally measured as the percentage rate of increase in Gross Domestic Product (GDP). GDP is the What this approach therefore depicts is that for development to be considered to have taken place, there should be an increase in the capability of an economy to produce goods and services, as compared from one period of time to another. This increase must be measurable with respect to the productive output of each sector of the economy. In relation to this, Todaro and Smith (2011) state that economic growth has three essential components, namely: •...
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...Population Growth and Ecological Footprints The population size (N) of a species at any point in time (t) is determined by its size at (t-1), its per capita birth rate (b), its per capita death rate (d), and immigration and emigration. Each of these values is, in turn, affected by a huge suite of biotic and abiotic conditions. Human populations are governed by these same variables. In this laboratory, you will use models of population growth to understand how population growth is affected by changes in b and d, and why the actual values of b and d are important. You will also explore some dimensions of human impacts on the environment. A model is a mathematical description of how one thinks a system works. For a population growing at a constant rate, where b and d never change, an appropriate model for population growth is the exponential growth model: dN/dt = rN where r = b – d, assuming that immigration and emigration are negligible. This is a density-independent model since neither b nor d change with increasing population size. Conversely, the logistic model is a density-dependent model, where b and d change with changes in the population size: dN/dt = rN [(K-N)/K] where K = carrying capacity of the environment. In this lab you will use a simple Excel spreadsheet model to explore how population size (N) changes as b and d change under the two different growth models, exponential and logistic. The spreadsheets have areas that you...
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...EDUCATION QUALITY AND ECONOMIC GROWTH Education Quality and Economic Growth Education Quality and Economic Growth Eric A. Hanushek Ludger Wößmann THE WORLD BANK Washington, DC © 2007 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: feedback@worldbank.org All rights reserved 1 2 3 4 5 10 09 08 07 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy...
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...Economic Growth Question 1 GDP in 2010 €2500bn % Change in 2011 0.7% €2,500bn x 0.7 = €17.5bn China has consistently the highest growth rates in GDP year on year and of the counties listed appears to be the main driver of growth as the other economies pattern of growth remains flat. For example the estimated growth in 2013 for China is 8.3% whereas the other economies are predicted to grow between 0.3% and 2%. Question 2 Fiscal drag is a concept where inflation and earnings growth may push more taxpayers into higher tax brackets. Therefore fiscal drag has the effect of raising government tax revenue without explicitly raising tax rates. In 2014, fiscal drag has pulled more and more taxpayers into the threshold at which people start paying the 40% tax rate of income tax. Just 1.4m people paid it when Lord Lawson established the 40p rate in 1988. This year 4.4m will do so. Question 3 Some view GDP as an inaccurate measurement for economic development. There are many limitations; GDP measures the quantity of goods produced in an economy without taking into consideration the effect those goods have on the economy. Higher quality goods/ new products replace the older products in the market, for example medical equipment improves constantly with technological advancements, however, GDP does not take into account how these changes have a positive impact on peoples lives, therefore increasing their quality of life; a factor of GDP. Another limitation...
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...July 2011 European growth and renewal: The path from crisis to recovery The McKinsey Global Institute The McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company, was established in 1990 to develop a deeper understanding of the evolving global economy. Our goal is to provide leaders in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions. MGI research combines the disciplines of economics and management, employing the analytical tools of economics with the insights of business leaders. Our “micro-to-macro” methodology examines microeconomic industry trends to better understand the broad macroeconomic forces affecting business strategy and public policy. MGI’s in-depth reports have covered more than 20 countries and 30 industries. Current research focuses on four themes: productivity and growth; the evolution of global financial markets; the economic impact of technology and innovation; and urbanization. Recent reports have assessed job creation, resource productivity, cities of the future, and the impact of the Internet. MGI is led by three McKinsey & Company directors: Richard Dobbs, James Manyika, and Charles Roxburgh. Susan Lund serves as director of research. Project teams are led by a group of senior fellows and include consultants from McKinsey’s offices around the world. These teams draw on McKinsey’s global network of partners and industry...
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...1111/j.1467-8586.2010.00364.x CULTURE AND GROWTH: SOME EMPIRICAL EVIDENCE Dustin Chambers and Susan Hamer Department of Economics and Finance, Salisbury University, Salisbury, USA ABSTRACT Using Hofstede’s cultural data set, this paper examines the impact of cultural characteristics on a nation’s economic performance. Using a two-step estimation procedure, we first estimate a panel growth regression and obtain estimates of each nation’s fixed effects, which reflect idiosyncratic differences in growth performance. In the second step, we regress the fixed effects on invariant cultural and institutional variables. Our estimation results suggest that individuality and tolerance for uncertainty are the most important cultural factors in explaining nation-specific growth performance. Furthermore, our findings suggest that political and property rights play a major role in determining idiosyncratic growth. Keywords: culture, economic growth, freedom, property rights JEL classification numbers: C23, O1 I. INTRODUCTION Using several measures of culture, we seek to determine the effect of culture on a nation’s economic performance. Among the cultural characteristics that we examine, individuality and uncertainty avoidance are found to be the most important in predicting economic growth that is not otherwise explained by economic fundamentals. Moreover, we discover that these cultural characteristics indirectly influence growth by shaping the legal framework of the nations...
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...Topic Growth Hormones. Endocrine system is a very important part of the human body, The endocrine system helps regulate and maintain various body functions by synthesizing and releasing hormones, chemical messengers. (Adam, 2001) The major areas of control and integration include responses to stress and injury, growth and development, absorption of nutrients, energy metabolism, water and electrolyte balance, reproduction, birth, and lactation. (http://www.pennmedicine.org/, 2001) The endocrine glands include the pituitary, thyroid, parathyroid, adrenal, and pineal glands. (Tortora 348) There are organs that are not classified as endocrine glands but have cells that secrete hormones ie. hypothalamus, thymus, pancreas, ovaries, testes, kidneys, stomach, liver, small intestine, skin, heart, adipose tissue, and placenta. (Tortora 348) Human Growth Hormone (HGH) is a hormone secreted by the anterior pituitary that stimulates growth of body tissues, especially skeletal and muscular tissues. (Tortora G-14) The normal functions of HGH stimulates the growth of essentially all tissues of the body, including bone, GH is vital for normal physical growth in children; its levels rise progressively during childhood and peak during the growth spurt that occurs in puberty. (Growth Hormone 2014) This hormone is really important because of its characteristics, without this hormone working properly there would be adverse affects to a persons physical appearance and structure. A lack...
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...and New York” (Campbell 1). Population growth is the increase of individuals, which has increased tremendously in the DFW area. As a metroplex we should care about the population increasing because we are running out of resources, we are overcrowding and expansion of diseases. Even though it boosts the income of the economy, the alarming rate of population growth in the DFW area threatens the community. In order to improve the rate of population growth in DFW, the city needs to better Education, women empowerment, and Family planning. DFW has been the most growing metroplex in the country besides New York and Houston. The DFW area is full of attractions and businesses, this area is great for doing businesses. Therefore, people of cities are moving to DFW for their business or the attractions DFW has. “Texas added more than 387,000 residents between July 1, 2012, and July 1, 2013, and more than 1.3 million since April 1, 2010, significantly more than any other state” (Young 1). DFW’s population keeps increasing, therefore, its getting worse and worse for our community. The population is increasing because a lot of immigrants from Mexico are coming our way and increasing our population. The Hispanic population is is getting closer and closer to the non-Hispanic population. “Hispanics made up 38.3 percent of the Texas population compared with 16.9 percent for the U.S.” (Martinez 1). Everybody should care about population growth because we as people need the natural...
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...Economic growth is increases in output. It can occur if previously unemployed resources are employed, there are more resources or existing resources improve in quality (Grant and Stanlake, 2000:285). According to the report, the economic gap between the north and the south of the United Kingdom was significantly enlarged in 10 years (White, 2015). Regional outcomes in Britain have exhibited strong signs of divergence and asymmetries on the basis of a North-South divide for over twenty years (lse.ac.uk, 2006). The purpose of this essay is to examine the regional imbalance in the United Kingdom. After first explaining measurable growth by some economic theories, it will analyse actual and potential growth by drawing business cycle and LRAS diagrams. Next, it will analyse the reasons for regional imbalance. Finally, it will evaluate actual supply side policies. Real GDP measures the value of goods and services produced at constant prices, the change of the real GDP only reflects the change of the quantity of production. In addition, people prefer to use real GDP than nominal GDP because real GDP reflects the economy’s ability to satisfy people’s needs and desires (Mankiw and Taylor, 2011:496-497). According to below graph, it shows that UK economy has experienced up-and-down swings in the years since 2003. Before 2008, growth more stable between 0.2 and 1.8 per quarter. However, GDP is more unpredictable after 2009. (Source: BBC news, 2015) The first type is actual growth which...
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...POPULATION GROWTH AND THE PRESSURES IT PLACES ON EARTHS RESOURCES World population has rapidly increased in the last century and has now reached a staggering seven billion, raising alarming concern for the sustainability of our planet. Rapid population growth and economic development are increasing the demands on natural resource stocks (Orimoogunje, 2011). Sub-Saharan Africa is projected to become the primary source of population increase (United, 2002), yet lack of infrastructure represents one of the most significant limitations to economic growth, environment management and achievement of the Millennium Development Goals (Paul M. Pronyk, 2007). Uneven resource consumption is wasteful and contributes to the maldistribution of basic resources in developing countries. Studies show that high income earning countries constitute a smaller number of the population, but consume nature’s resources much faster than developing countries; this adds to the inequality of the world and compromises the stability of our ecosystems to support population growth (Kemp, 2004). The global population is expanding and human resource consumption rates are increasing adding to the environmental problems we face today. During the last century alone, global population in the world has grown from 1.65 billion to 7 billion (World population). In the gap between when my parents were born and I was born the population has roughly doubled from 2.25 billion in the late 1940’s to 4.5 billion in the early...
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...report with the exception of quarter IV in 2012 it seems that the third and fourth quarters have a more stable and higher GDP rate than quarters one and two. According to the graph the largest swing has been this past years quarter 1 to quarter 2, going from just under -2% to 4.2%. The least amount of growth or biggest decrease in real GDP would be the time from quarter 4 of 2013 to quarter 1 of 2014 going from 3.5% down below -2%. Based on what I have researched I believe the real GDP will discontinue its upward swing and level back out to about 2 to 2.5% by the end of quarter 4. The wage growth is slowing down and finance purchasing is coming to a surprising halt implying that less spending will take place than previously estimated for the year. In the public sector, improved economic conditions are widely spreading generating more state and local revenue while the federal spending has a tight fiscal policy stance. This creates a slowing growth potential in the long run making it appear that the economy is approaching its full capacity when looking at productivity, available jobs and investment opportunities. This can lead to a tighter labor market and slower economic growth. Wages are always a subject of discussion but for most of this year have been a popular topic, especially in the lower parts of the economy (minimum wage jobs). I believe one of the biggest issues that could affect the GDP would be raising the minimum wage. Many people working part time jobs especially...
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