A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result real GDP per worker (Y/L) grew from $20,000 to $25,000. If the economy increases its capital per hour worked by another $10,000 to $60,000, but there is no change in technology, by how much more and in what direction will output per worker change? Output per worker will increase by exactly $5,000 Output per worker will increase by more than $5,000 Output per worker will increase by less than $5,000 Output per worker will fall by more than $5,000
A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result real GDP per worker (Y/L) grew from $20,000 to $25,000. If the economy increases its capital per hour worked by another $10,000 to $60,000, but there is no change in technology, by how much more and in what direction will output per worker change? Output per worker will increase by exactly $5,000 Output per worker will increase by more than $5,000 Output per worker will increase by less than $5,000 Output per worker will fall by more than $5,000
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 35P: Say that the average worker in the U.S. economy is eight times as productive as an average worker in...
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what is the mathematical way to solving this, i used the slope formula but i dont know if that is the way to get answer.
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