Chapter 7: Problem 31
As technological change makes us more sedentary and food costs increase, obesity is likely. What factors do you think may limit obesity?
Chapter 7: Problem 31
As technological change makes us more sedentary and food costs increase, obesity is likely. What factors do you think may limit obesity?
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Labor Productivity and Economic Growth outlined the logic of how increased productivity is associated with increased wages. Detail a situation where this is not the case and explain why it is not.
Assume there are two countries: South Korea and the United States. South Korea grows at 4\% and the United States grows at \(1 \% .\) For the sake of simplicity, assume they both start from the same fictional income level, \(\$ 10,000\). What will the incomes of the United States and South Korea be in 20 years? By how many multiples will each country's income grow in 20 years?
Why does productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?
Use an example to explain why, after periods of rapid growth, a low-income country that has not caught up to a high-income country may feel poor.
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