Consider the production function Y = z * K^1/3 * N^1/3 * L^1/3 where Y is output, z is a parameter capturing technology, K is capital, N is labour and L is the area of land. Question text If we double the technology factor, z, then output will double. Question 17Select one: True False Question text If we increase the population, and therefore the workforce, then if nothing else changes, the average product of labour must increase. Question 18Select one: True False Question text We would need to increase capital input by a factor of 8 to double output. Question 19Select one: True False Question text Increasing technology will increase labour productivity. Question 20Select one: True False

Consider the production function Y = z * K^1/3 * N^1/3 * L^1/3 where Y is output, z is a parameter capturing technology, K is capital, N is labour and L is the area of land. Question text If we double the technology factor, z, then output will double. Question 17Select one: True False Question text If we increase the population, and therefore the workforce, then if nothing else changes, the average product of labour must increase. Question 18Select one: True False Question text We would need to increase capital input by a factor of 8 to double output. Question 19Select one: True False Question text Increasing technology will increase labour productivity. Question 20Select one: True False

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions

Section: Chapter Questions

Problem 6WNG

See similar textbooks

Similar questions

Show that, when using a traditional economic production function,doubling our population can double our output if capital stocks alsodouble. Use the production function: Q = AK L , where A representstechnology in an economy, K capital, and L labor. Double K and L andshow that Q also doubles, assuming α=β=1/2. Now show that, when we incorporate natural capital into thediscussion, doubling the population does not increase output in thesame way (since natural capital cannot also grow). Use theproduction function: Q = AK L N , where N is natural capital. DoubleK and L and show that Q less than doubles, assuming α=β=γ=1/3.
The “per person” versions of production functions: Write each productionfunction given below in terms of output per person y ; Y/L and capital perperson k ; K/L. Show what these “per person” versions look like in a graphwith k on the horizontal axis and y on the vertical axis. (Assume A is somefxed positive number.)(a) Y = K 1/3L2/3 and Y = K 3/4L1/4 (on the same graph) (b) Y = K(c) Y = K + AL(d) Y = K − AL
Consider the economies of Hermes and Gobbledigook, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 20 years, the level of physical capital per worker rises by 4 tools per worker in each economy, but the size of each labour force remains the same. first dropdown question options are (larger or smaller), second dropdown question options are (the brain drain, inward orietned growth, diminishing returns, constant returns, increasing returns), the third dropdown question oprions are (more diffucult or easier)
1. Country A and B both have the production functionY = F (K, L) = K ½L ½or Y = K0.5 L0.5 a) What is the per-worker production function, y= f (k)? Please make sure to write specificfunctional form of the per-worker production function. b) Assume that neither country experiences population growth nor technological progressand that 4 percent of capital depreciates each year. Assume further that country A saves 24percent of output each year and country B saves 16 percent of output each year. Using youranswer from part a) and the steady-state condition, find the steady-state level of capital perworker for each country. Then find the steady-state levels of income per worker for eachcountry and steady-state level of consumption per worker for each country.
1. O LounchPad • Country A and country B both have the production function Y = F(K, L) = K/³L²/3. a. Does this production function have constant returns to scale? Explain. b. What is the per-worker production function, y = f(k)? c. Assume that neither country experiences population growth or technological progress and that 20 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 30 percent of output each year. Using your answer from part (b) and the steady-state condition that investment equals depreciation, find the steady-state level of capital per work- er for each country. Then find the steady-state levels of income per worker and consumption per worker. d. Suppose that both countries start off with a capital stock per worker of 1. What are the levels of income per worker and consumption per worker?
Show graphically on the same x and y axis what happens to this production function if there is a technological advancement in this economy. Don,t copy from anywhere.
Consider the economies of Sporon and Gobbledigook, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 20 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2015 and 2035. Sporon Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2015 11 30 1,800 2035 16 30 2,160 Gobbledigook Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2015 8 30 900 2035 13 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Gobbledigook. From 2015 to 2035, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker…
Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 10 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2016 and 2026. **THE TABLE IS ATTACHED** Initially, the number of tools per worker was higher in Hermes than in Gribinez. From 2016 to 2026, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Hermes to rise by a _________ (LARGER/SMALLER) amount than productivity in Gribinez. This illustrates the _______ (CATCH-UP/NATURAL RESOURCES/TECHNOLOGY/HUMAN CAPITAL) effect. THANK YOU FOR THE HELP
e here to search ? 2 2 3 S 1. Consider the following production function: Y=F(K, L) = A(2K + 3L) Does this production function exhibit constant returns to scale? 2. Suppose the table represents the production function of both Mexico and Spain. Use the following information to answer the next question. K = Capital (trillions) Y = Output (trillions) Country L = Population (millions) Mexico 3 Spain E D 105 3. Calculate per capita income for both countries. 4 45 2. Calculate total factor productivity for both countries using Equation 3. Equation 3: Y = F(KL) = AK0.3 L0.7 R 4. Explain the difference in per capita income. % 0.18 0.74 5 6 hip & T Y 1 G H a 00 1.0 W 1.7 39 Focus
Indicate whether the following statement is TRUE or FALSE and explain your answer: ‘Consider threeinputs of production: labour, physical capital and natural resources, and an economy with decreasingreturns to scale. If you increase all three inputs x times then the total gross domestic product (GDP) inthe economy will increase exactly x times, but GDP per capita will decrease.’
Why Capital does not Flow from Rich to Emerging Countries? We assume that the production function in country i is 1 1 2 Yi = A ² k², (1) where y, and ki are output and capital per capita, respectively, in country i, and A is a measure of technology in country i. (a) Calculate the marginal product of capital (MPK) denoted by Ri in country i. (b) Express the MPK in terms of output per capita, yi, i.e., eliminate ki from Ri by using the production function (1). (c) We consider two countries, indexed by i 1 and i 2, whose production function is described by (1). Both are assumed to have the same level of productivity, i.e., A₁ A2. We assume y2 50y₁. Calculate the ratio R₁/R₂. (d) We keep assuming that y2 50y1, but now we assume that A2 educational attainment is higher in country 2. Calculate the ratio R₁/R₂ under 10A₁ because these assumptions. FX = - (e) We keep assuming y2 50y₁ but now we consider that technology in country 1 is a function of technology of the more advanced country 2,…
Consider the following data on two fictional countries: 1 and 2. . Country 1 Country 2 Output per worker (y) Physical Capital per Worker, k Human Capital per Worker, h 120 100 50 100 50 25 If the production function is y = Akºh'-a, where a = 0.5., then if all differences in output were due to differences in factor accumulation then country 1 output would be %3D times greater than in Country 2 1.70 0.59 1.17 1.46