Economic

10 LO 8. G Tonnes of coal W B N H 0 2 3 4 6 7 8 9 10 Number of workers The figure depicts isocost lines for Britain in the 1600s and 1700s. Which of the following is true? O The flatter isocost line HJ for the 1600s Britain indicates high wage cost relative to the coal price. The increase in the level of wages relative to the cost of energy in the 1700s is represented by the shifting out of the isocost line from HJ to the parallel isocost line going through A. O Had the wage level fallen together with the falling energy costs (due for example to cheaper transportation), then the 1700s Britain would definitely stayed with technology B O The shifting in of the isocost line to FG from the parallel one going through B suggests that an innovation rent is earned by 1700s Britain as the country moves from technology B to A.ort Question 9 5 points Save Answ 110 1880s 100 Malthusian traps 1490s 18505 1830s 17405 1820s 1840s 1430s 80 13705 1780s 13305 Escape Real wage index (1860 = 100) 1570s 18105 1770s 70 1650s 18005 60 1350s 1280s 18th century 1590s 13405 \\ 12905 13th to 16th century 6 8 10 12 14 16 18 20 Population (millions) The figure plots an index of real wages against population in England from the 1280s to the 1860s. According to Malthus, with diminishing average product of labour in production and population growth in response to increases in real wages, an increase in productivity will result in increased population but not increased real wages in the long run. Based on the information above, which of the following statements is correct? Between the 1800s and the 1860s population grows as real wages rise. This is entirely in line with Malthus's description of the economy's growth. O There is a clear evidence of a persistent and continuous Malthusian trap between the 1280s and 1800s. O The Malthusian traps seem to occur in a cycle of 60 years. O The Malthusian model does not take into account the possibility of a persistent positive technology shock that may offset the diminishing average product of labor.Question 10 5 points Save An: An approach that studies the process of economic change, including technological innovation, the diffusion of new social norms, and the development of institutions. 0 Relative prices 0 Evolutionary economics 0 Production function 0 Innovation rents Look again at this figure, showing a graph of real wage index in England between approximately 1260 and 2000. You are also told the following: In the bubonic plague of 1348 and 1351, between one quarter and one third of Europe's population died.ln the 1?th and 18th centuries the wages of unskilled workers relative to the incomes of land owners were only one fifth of what they had been in the 16th century. It follows that: 0 According to the Malthusian model the fall in the population to the bubonic plague would have led to an increase in the average productiinty of workers, causing the observed rise In the real wage posteplague, O The doubling and halVing ofthe real wage index over 250 years from around 1350 is contrary to the Malthusian model C) The fall in the unskilled workers' share of total output in the 17th and 18th centuries was due to the fall in their average product of labour C We can see that real wages shot up in the 19th century. The fall in relative wages ofthe unskilled workers in the 17th and 18th centuries was one of the factors that led to this