Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Economic growth - Math Problem Example

Comments (0) Cite this document
For a country or a particular area to develop, it is important to ensure that the product parameter is always positive and thus the reason why it has to be above zero at all times. Having a negative product parameter leads to a negative result that is not the goal of any…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful
Economic growth
Read TextPreview

Extract of sample "Economic growth"

Economic Growth 4(a) Y = Output per worker K = Physical capital per worker A>0 =Product parameter is constant Y = AK^0.5 Considering the level of capital that is the golden rule, then y = n + δ. Given parameter values and the capital per person the result is:
y= (1/2) K^1/2 = (1/2) * 4^1/2 = 0.25 > n + δ = 10
For a country or a particular area to develop, it is important to ensure that the product parameter is always positive and thus the reason why it has to be above zero at all times. Having a negative product parameter leads to a negative result that is not the goal of any country. Physical capital is vital for any organization for it shows the amount that the person ventured into the business bearing. This capital is later subtracted from the total income generated by an organization and this leads to the formulation of the net income (Weil, 2013). Multiplying the product parameter by physical capital that each worker employs and then putting it by the power of 0.5 shows the output per worker. This is important for an organization gets to understand the weakest links in the organization and deals with them appropriately.
Country 1 (i=1)
Country 2 (i=2)
Provided I have all information, regarding the average output per worker and the physical capital per worker for each of the countries, it is possible to calculate the relative productivity of the country. Considering:
Y = Output per worker
K = Physical capital per worker
A>0 =Product parameter is constant
Y = AK^0.5
Then the best way to carry this out is by using reverse calculations where
Y = AK^0.5
0.5√Y = AK
0.5√Y/K = A
It is thus appropriate to state dividing the quarter root of the stated output per worker and dividing by physical capital per worker offers the relative productivity per worker for a each of the countries.
The differences in the levels of production in a particular country mainly depend on output per-worker in the various organizations in the country. There are different organizations that let their workers operate without following up on the attitudes expressed by employees while working. Employees that perform poorly under supervision are the main reason why the output per worker is usually low (Weil, 2013). The consequent of this is the entire country having a low Gross Domestic Product and thus low productivity levels in some countries. However, there are some countries that are strict with regard to the performance of the organizations and as expected the result of this is having hard working people, this raises the Gross Domestic Product. With a high GDP, the productivity levels are normally high. Government policies can lead to high productivity if for example they focus on the rights of workers and ensure that they receive fair treatment. This leads to workers with increased morale and consequently high productivity levels. Another example is having policies that seek to ensure that politicians do not interrupt economic processes and let the actual experts, economics, focus on these issues.

Weil, D. (2013). Economic growth. International Edition, 3rd edition. London: Pearson. Read More
Cite this document
  • APA
  • MLA
(“Economic growth Math Problem Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from
(Economic Growth Math Problem Example | Topics and Well Written Essays - 500 Words)
“Economic Growth Math Problem Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Economic Growth distributed evenly across the population. Economic growth is shown by a shift in the Production Possibility Curve (PPC) of a curve outwards since it indicates that there is an increase in the capacity to produce goods (Mukherjee, pp. 239, 2002). Broadly, economic growth encompasses living standards in various countries as well. Economic growth is a global topic and quite a compelling one (Weil, pp. 19, 2009). It is also a topic, which has been studied since the days of Adam Smith (Helpman, pp. ix, 2005). Since economic growth leads to an increase in the Gross Domestic Product of a country, that is, an...
4 Pages(1000 words)Essay

Economic Portfolio - Economic Growth

... Economic growth: In every economy, there are always four main macroeconomic objectives which are, price stability, economic growth, balance of payment and full employment. To achieve this objective, both fiscal and monetary policies have to be implemented. Normally for any particular economy, both social and political problems are the key factors relevant in achieving all the four objectives. Fiscal policy refers to expenditure and taxation policies central government, that are implemented by the ministry of finance through special agencies, directly or through area ministries, where as, monetary policies are the government’s regulations of the interest rate level and money supply in the economy. Usually, the monetary policy is executed...
3 Pages(750 words)Coursework

Economic Growth

...), Economic Growth, Open University Worldwide. 3. Crafts, N. & Woodward, N. (1991), The British economy since 1945, Clarendon Press, Oxford. 4. Jones, C. I. (1999), ‘Growth with or without scale effects’, The American Economic Review 89(2). 5. Jones, C. I. (2002), ‘Sources of u.s. economic growth in a world of ideas’, The American Economic Review 92(1). 6. Mankiw, N. G. (2002), Macroeconomics, Worth Publishers. 7. Mankiw, N. G., Phelps, E. S. & Romer, P. M. (1995), ‘The growth of nations’, Brookings Papers on Economic Activity 1995(1). 8. Romer, D. (1996), Advanced Macroeconomics: Third Edition, McGraw-Hill. 9. Romer, P. M. (1986), ‘Increasing returns and long-run growth’, The Journal of Political Economy 94(2). 10. Solow, R. (1988), Growth...
7 Pages(1750 words)Essay

Economic growth

...goods are produced and everyone has more goods for consumption and as a result living standard in the economy increases. This is why economists rate economic growth as a matter of great importance. We can use the 70 rule to determine the effect of difference between 2.5 and 3 percent of economic growth over few decades. If economy is growing at 2.5%, the economic growth or total output will double from the current level in 70/2.5= 28 years. However, if the economy is growing at 3%, the total output will double in 23 years. This means that even a mere difference of some points or minute figure could mean that economy is growing very...
1 Pages(250 words)Assignment

Economic Growth

..., Italy and United Kingdom) shows that real GDP per person has grown steadily from 1963 to 2003. However, the United States still displays the highest growth rate in this period as shown in the left panel of Figure 2. The rest of the world also displayed increasing growth rate, but at a much slower pace than the seven biggest economies which resulted to a wider gap between the real GDP per person among these countries as shown in the right panel of Figure 2. Figure 2 Economic Growth around the World Source: Parkin and International Monetary Fund The rest of Asia, on the other hand, as represented by Hong Kong, Singapore, Taiwan South Korea, and China also showed...
11 Pages(2750 words)Essay

Economic Growth

... an increase in the production capacity of goods and services in an economy. (Encyclopædia Britannica, 2008) It is also seen as the increase in the standard of living of the society as a whole. Its normally calculated by comparing the Gross Domestic Product (GDP) of a country from one year to another. There are various driving forces contributing to an economic growth, namely, improvement in technology and productivity, increases in the levels of economic activity, efficient Human resource management, greater access to capital resources, etc. Economic growth is essential because it drives the country towards improved standards of living as well as enables it to be in the lead in today’s competitive environment in the international market...
4 Pages(1000 words)Assignment

Economic growth

... but poor living standards are ranked high while those with poor quality education and high living standards are ranked low. As such, the article singles out education as the main contributor of the national development. References Pinar, M. , Stengos, T. , Topaloglou, N., (2013) . Measuring human development: A stochastic dominance approach. Journal of Economic Growth, 18 (1), 69-108....However, the index is limited in that it ignores the relationship of the attributes that are used to construct it. As such, two countries can have the same HDI but have different levels of education standards or health care. In order to eliminate the limitations of the HDI and traditional models that are used...
4 Pages(1000 words)Essay

Economic Growth

... and is not found in government change propensity that is also contemporaneously increasing. (Russett, Starr and Kinsella) Economic growth results to a middle class that is educated and entrepreneurial which soon or later strives for control over the country’s fate. This ends in the acceptance and giving in by the repressive government in place. The progression in most of the countries that are democratic is not pegged to economic growth after their democratization. Among democracies that are already existing and established, a high growth rate is as a result of stability as a result of liberal democracy. Greater prosperity alone doesn’t result to political freedom of a greater degree. However, the benefits of economic development...
2 Pages(500 words)Essay

Economic Growth

...and sustaining. This is because, Singapore’s population is growing at a slow rate that the current economic plan cannot sustain. The available productive population is not enough to produce goods and services that can support the large old and unproductive population. More to that is Singapore had is limited in terms of land availability and has limited supply of water. This makes it hard to sustain its economy as a lot revenue earned is spend in purchasing this resources rather than developing the economy of that nation (Abeysinghe & Choy, 7). However, it has to be concluded that, though Singapore’s economic growth has not attained a level in which it can be referred to us strong and...
8 Pages(2000 words)Essay

Economic Growth

.... It stresses the importance of agriculture and the notion that manufacturing is central to the entire economy. The article expounds on advocating free trade as a benefit to the US in his comparative advantage, which is the reason I give it a thumbs up in issue articulation (Leubsdorf 1). Leubsdorf affirms that this would finally increase economic growth. In my opinion, entrepreneurship is viewed as creative destruction, which leads to economic growth and are backed up with Fed data on the economic situation. The situation of the economic growth has a relation to the state of the US labor-time, capital goods, output,...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Math Problem on topic Economic growth for FREE!

Contact Us