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Consider the Solow model. The economy of Oz produces its output using capital and labor. The labor force is growing at 2% per year. At the same time, there is technical progress at the rate of 3% per year, so that each unit of labor is becoming more productive. Suppose that the depreciation rate is 10% and the savings rate is 20%. 1. How fast is the effective labor force growing in the land of Oz? 2. What is the growth rate of per capita income in the long run? 3. And what is the growth rate of total national income in the long run?

Suppose that there are three states of the world, a, b, and c. The probabilities of the three states are ?1 = 0.25, ?2 = 0.5, and ?3 = 0.25. Let A, B, and C denote the Arrow-Debreu securities that pay $1 in states a, b, and c, respectively. That is, A = (1,0,0), B = (0,1,0) and C = (0,0,1). Let pa = 0.4, pb = 0.5 and pc = 0.2 denote the prices of A, B, and C.

Consider a security X which is worth $2 in state a, $3 in state b, and $1 in state c. If there are liquid markets for A, B, C and X, what is the price of X?

One way to learn about what makes some countries richer is to run statistical tests to see which factors are good at predicting a nation's level of productivity. Sometimes it turns out that a relationship is just a coincidence (like the fact that people in rich countries eat more ice cream), while other statistical tests really can tell you about the ultimate causes of productivity. A statistical test can't tell you everything, but it might help point you in the right direction. In courses on econometrics and statistics, you can learn about how to run sensible tests. Here are 17 variables that turned out to be very strong predictors of a nation's long-run economic performance in literally millions of statistical tests. They are in rank order, and a "+" means more of that value was good for long-run Productivity:

1. Whether a country is in East Asia (+)

2. Level of K-6 schooling (+)

3. Price of capital goods (-)

4. Fraction of land close to the coast (+)

5. Fraction of population close to the coast (+)

6. Malaria prevalence (-)

7. Life expectancy (+)

8. Fraction of population Confucian (+)

9. Whether a country is in Africa (-)

10. Whether a country is in Latin America (-)

11. Fraction of GDP in mining industries (+)

12. Whether a country was a Spanish colony (-)

13. Years open to relatively free trade (+)

14. Fraction of population Muslim (+)

15. Fraction of population Buddhist (+)

16. Number of languages widely spoken (-)

17. Fraction of GDP spent on government purchases (-)

a. Which of these factors sound like the "three factors of production?" Which ones do they sound like?

b. Which of these factors sound like the "five key institutions?" Which ones do they sound like?

c. Which of these factors sound like geography?

d. The western United States was a Spanish colony until 1849. On average, former Spanish colonies have had poor economic performance. Does the western United States fit that pattern? Why or why not?

0-50 60- 69 70-85 86-100 Ql The number of The 10-15 IS -related BP IS-related small (business processes) are business somewhat logical, but processes is less incomplete or inaccurate than 10 or more than 15. The 4 components for or repeat too much. each BP is somewhat (>= 3 errors) correct. The 10-15 IS -related BP (business processes) are mostly (1 or 2 errors) logical, accurate, and concise, and somewhat complete. The 4 components for each BP is mostly correct. Note 1: Concise The 10-15 smaller IS-related BP are fully (0 error) correct, complete, concise, and as accurate as possible. For each BP, the 4 components are correct. Note 1: Complete: include some back- end activities such as BP involving software on website servers or on a credit card company's server. Note 2: It is ok to make some logical assumptions about what IS is being used at a BP. Assignment 1 (20% of course grade} Business Processes and Information Systems: Mini case: Information systems can help us to address mental health challenges. Assuming you are addicted to one of the following: alcohol, smoking, social media like Facebook, or computer games, or assuming you want to lose weight, please choose one scenery, and nd a good app on your cell phone which can help you to track and change your habit or addition. Please get the app and explore the app. 01: Please analyze the business process in the app by breaking the whole business process into 10-15 smaller information system-related business processes. For each smaller business process, please identify and describe the 4 components of that business process. Note: You can either draw a graph or use text. Any format will do as long as the contents of your analysis are correct. (12. At each of these small business processes, if an information system is used, please identify its components: IT (hardware, software, networks, and database], people, and business process. 0.3. As a user of this website, to what extent (giving a rating between 0% 400%) you are satised? To what extent you are willing to continue to use the app? Why? According to you as a user, how can this app be better designed to improve the user's experience?