week 6

Question 1

convergence

Answer 1

The tendency for coun- tries with lower output per capita to grow faster, leading to convergence of output per capita across countries.

Question 2

Malthusian trap

Answer 2

the case of an economy where increases in productivity lead to a decrease in mortality and an increase in population, leaving income per person unchanged

Question 3

saving rate

Answer 3

the proportion of income that is saved

Question 4

to find the marginal product

Answer 4

do the first derivative of the production function to get
MPK and MPN

Question 5

to find if the marginal product of K and N are increasing or decreasing

Answer 5

find the second partial derivative of MPK and MPN