What determines the long-run growth rate of an economy? The theory of economic growth was developed to answer this question and has traditionally used dynamic models for the task. Starting from Solow (1956)’s neoclassical growth model, write a group report exaplaining how differential equations in continuous time can help building such models. Your report should include: [Neoclassical model] A discussion of how differential equations and phase diagrams were used by Robert Solow to formalize his theory. Make sure to elaborate on the concepts of steady state and convergence in this context. [Alternative models] An examination of possible limitations and refinements of Solow’s contribution, including examples of alternative dynamic models of economic growth. The number of alternative models you consider should be equal to your total group members minus one (e.g. three refined models in a group of four).[unique_solution] [Simulation] An application of your selected models to an economy of your choice. Hint: collect reasonable values for all constant paramenters – e.g. labour force growth rate, saving rates etc.., and solve your models – either analytically…
Demand and Supply There is a large earthquake in a city. Some roads are destroyed, and people need more bottled water because pipelines are damaged. Use a supply and demand curve to show what happens to the price and quantity of bottled water in this city. Show with graph and explain The damage of pipelines significantly reduces piped water in the town. Since water is a basic need, people will have to shift to bottled water. According to the law of demand and supply, an increase in demand for bottled water results in an increase in price. Since water is an inelastic product, people will continue to buy despite the rise in price, and this increases supply in the short run. From the above graph, an increase in demand for bottled water from D1 to D2 results in to increase in quantity supplied from Q1 to Q2. Consequently, price increases from P1 to P2. The overall equilibrium point shifts from EO to E1. All the above changes happen in the short run, while in the long run, things might be…
Sustainability Dimensions and Strategies of Roche Introduction On September 19, 2005, Roche (Centre, 2020), a multinational pharmaceutical company, made a breakthrough. For a fact, the Dow Jones Sustainability and FTSE4Good indices remained part of the Roche Company. Franz B. Humer, Chairman, and Chief executive officer of Roche, shared his satisfaction with Roche’s performance in achieving the high standards set by Dow Jones and FTSE4Good Sustainability Indexes (Centre, 2020). In 2004, Roche Company also got listed, in light of the company’s cultural, environmental, and social achievements (Centre, 2020), for the first time in Dow Jones Sustainability World Index (DJSI World) and the Dow Jones STOXX Sustainability Index (DJSI STOXX). Roche Company has also got ranked second in the pharmaceutics industry for both indices as one of the top sustainability-focused companies in the world. In the FTSE4Good Index sequence, Roche has retained its place. Company Background Fritz Hoffmann-La Roche set up F. The pharmacy corporation, Hoffmann-La Roche & Company, was subsequently branded in 1896 by Roche (Centre, 2020). The original inventory in Roche’s product range consists of injury disinfectants (Airol) and cough…
risks resulting from uncertainty of prices QUESTION 8 In low and middle-income nations, the risks resulting from uncertainty of prices pose serious threats to traders and farmers. In these developing countries, the risks brought about by price uncertainty are increasingly borne by traders and farmers and not by the government or consumers. Prices are subject to variations that are quite unpredictable, with direct and indirect costs. The National Statistical Office (NSO) of India has set the nominal growth rate at 7.5% for this fiscal year, which will end in March 2020, the worst to be recorded since 1975. This has been caused by a budgeted fiscal deficit of 7 trillion compared to the now low GDP number of 204 trillion. The result is a fiscal deficit ratio of up to 3.5% of GDP. This fiscal slippage during times of slow growth does not come surprisingly; early warning signs of the sustainability of debt and its repayment have already started to show up, causing major concerns in India’s bond markets. The thought that an investor would give payment to loan money over any…
manufacturing of low-cost electricity and accessible resources Electricity is the primary energy that makes the world run daily, without power can’t do any job, and the world is going to fight. This project focuses on the manufacturing of low-cost electricity and accessible resources — the primarily used for electrical power generation. The energy system is manually operated. This study discusses the design, evaluation, and feasibility of the bicycle generator. The complete design and usefulness of bike energy generation involve battery, production, bicycle, sprocket, inverter board, and chain, the bicycle’s back wheel, combined through the belt with the generator. The strap is positioned above the wheel’s rim. Differently, the belt is linked in sequence to the generator through the battery and the inverter board. The current life of the individuals is running with inevitable frequent power cuts of about three hours a day, which are hardly regulated by the wealthiest people using the electrical power generators, not by middle-class individuals. The two generator terminals are linked to the battery. The electricity is stored using the battery. It can be stored directly…
Monetary systems and interest rates Introduction Every nation has and needs a monetary system to control supply and money value in a country. In the early years, the United States used a gold standard financial system; then, it later faced harsh criticism from some of the nation’s especially the United States of America, at around the late twentieth century (Cassel, 2017). This paper aims at defining what is the gold standard and also shedding light on the matter of why the golden rule was made away within the United States of America. It also will explore whether or not it was better than the current FIAT system. A gold standard is a monetary system money paper is directly linked with a fixed amount of gold. In this system, the monetary unit is defined by a certain amount of gold. A given amount of gold was equated with a given amount of paper currency (Willson, 2017). The requirement to redeem for gold guarantee was gold value for all kinds of bank issue-money. The purchasing power of gold currency was very stable.…
The importance of cotton to the Atlantic and American antebellum economy. When the demand for a product is high and its supply low, the price typically rises. Initially, American farmers invested in the farming of tobacco and rice, an investment that experienced a high turn over during the antebellum era. The introduction of cotton farming was due to the high demand for cotton that existed in Great Britain. Majority of the farmers thus shifted their concentration to this particular crop which was very easy to store and transport. In as much as the first plants were labour intensive, they were lucky in this field because there was an invention of a cotton gin which made it very easy to separate raw cotton from the seeds. How could they shift so fast to a crop that initially did not exist in the United States? This paper seeks to answer this question by explaining the various reasons why cotton was essential to the economy of the Atlantic and America, which is also the reason why farmers found it profitable to invest in…
Convert Your Prepaid and Gift Cards into Cash amid the Coronavirus Pandemic Over the past week, the U.S. stock market was hit with record-breaking losses as panic increased over the COVID-19 coronavirus pandemic. On Thursday, the markets experienced the greatest percentage falls in a single day since the 1987 crash. The Dow Jones Industrial Average, for instance, closed with a 2,352-point loss (a 10 percent drop), the S&P 500 dropped 9.5 percent while the NASDAQ composite fell 9.4 percent. In efforts to combat and contain the deadly virus, the government is encouraging people to self-isolate as the cases surpass 5,000 across 49 states. States across the country continue to ban public gatherings while learning institutions and many businesses remain closed. People who have made contact with infected persons are being urged to home quarantine to avoid spreading the virus to friends, family and the wider community. With the pandemic expected to get worse with a substantial economic impact, there are ways that you can cushion the blow for you and your family. One way to do this is…
Role of Courts in Foreign Affairs The United States is one of the nations with the most developed democracy. However, the democracy of the United States is sometimes hindered by the constitutional process. The United States government has specific arms of governments, each with unique constitutional roles and tasks. Sometimes when a dispute occurs, the judiciary is tasked with solving such issues. On the other hand, the executive is tasked with making decisions, which are based on political question doctrine. An example of such a decision is the action by president George Bush to send the United States military to the Persian Gulf, in the interest of peace. Congress felt that such an action was unlawful, and the president, together with the executive, undermined the constitutional voice of the congress. However, the court could not rule on such an issue since matters regarding political questions demand a single voice statement form the government. This paper focuses on the functions of the courts in the United States regarding foreign affairs. Introduction On the 2nd of August 1990, the president of…
Corporate Governance Introduction The aim of corporate governance in an organization is to ensure the strategic, leadership, supervision, management, and reporting of the shareholders is done most appropriately. Generally, corporate governance is a system in which the company is controlled or directed. The regulation affirmations, among others, are practiced through corporate governance. It has an impact on the shareholder treatment as it influences the exclusive rules, conformance, or performance of an organization (Goranova, Abouk, Nystrom & Soofi, 2017). The goal of this essay is to explain how good corporate governance can improve shareholder treatment. First and foremost, a corporation is a legal fiction that tends to necessitate what is important to a private agreement among a group of people, such as shareholders. At times, it is a real entity where the laws serving the needs of a society are guaranteed. Thus, it provides rights and interests the shareholders need as well as seeking to balance the defined interest. On the other hand, good corporate governance, according to the United Kingdom Law of Economics report, is that it is that which…