1. The Grossman model uses the economic concept of a production function. Before you dive deeply into the Grossman model though, I want you to think more generally about the concept of a production function as it relates to health status. A production function describes the relationship between inputs and outputs for a production process. For a business, the inputs are labor, capital, raw materials, etc. and the output is the finished product. The production function is often describe mathematically using an equation like the one below: Y = K¹/3L2/3 Where Y is the amount of output from using K units of capital and L units of labor. a. Now consider a production function for something very different: in the United States. That is, consider a average life expectancy production function where Y = life expectancy measured in years. What do you think are the primary inputs? That is, what are the variables on the right-hand side of the equation? Hint: think broad categories...and there are more than two b. Notice the exponents in the equation above. The bigger the exponent, the larger the role the variable plays in the production process. In the equation above, labor is more important than capital for producing output since 2/3 is bigger than 1/3. In your estimation, which variables that you named in part a would have the largest exponents in the production of life expectancy? Why? c. Suppose that you keep increasing one input that you specified in part a, while keep the amount of all others constant. What would expect to happen to life expectancy as you add more and more of a single input? Does this idea help explain why the US spends more on health care than other countries but does not achieve longer life spans?

I am having trouble understanding how to answer the last part of this question. I am providing the work I did on the remainder of the problem to provide context, but the multiple choice question is what I'm stuck on. If you see an error in my previous work that would cause me to have trouble with this last question, please let me know and I will fix it. Thank you!

Economic Growth Akila and her family are the only inhabitants of a small oasis in the middle of the desert. They grow various kinds of trees, which provide them with everything they need. Akila has built an irrigation system that improves the productivity of the land. Production makes use of three factors: capital K (the irrigation system), labour N (the work done by Akila and her family) and land L (the oasis and the desert around it). The production function is given by F(K,N,L)= K*N*L*. Labour supply is fixed at N=1 and the family owns 64 units of land, L=64. The irrigation system is in constant need of repair; about 10% needs to be rebuilt every year to keep it in a good condition, i.e. K' = K – K +1, where I is investment in the capital stock. 1. Show that for a saving rate s, the law of motion for the capital stock can be written in per-capita terms as k'=k-k+s2vk . 2. Find the steady-state level of the capital stock k, output y and consumption e as functions of s. 3. Currently,…

Suppose that the production function is Cobb-Douglas. That is, the production function is . Further, assume that the parameter α = 0.3. Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percentage change)? The real rental price of capital (in percentage change)? The real wage (in percentage change)? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

If the production function describing an economy is Y= 20 KL23, then the share of income going to capital: O is about 33 percent. O depends on the state of technology. is about 67 percent. depends on the quantities of labor and capital.

am. 217.

Cindy Jo's Hair Salon is concerned about its rising costs of supplies, energy, and labor, so it is considering investing in better equipment, which hopefully will reduce the time required to perform most hairstyles as well as result in better perceived quality by its customers. It predicts that the added investment will increase output levels as well as reduce energy costs, since some of the new equipment (hair dryers) use less electricity. Labor Energy Material Total Hide Feedback investment Using the given information, determine the current and expected single-factor and total productivity measures. Do not round intermediate calculations. Round your answers to three decimal places. Productivity Current (this year) haircuts/dollar Ⓡ Incorrect haircuts/dollar Ⓡ haircuts/dollar .28 € haircuts/dollar Expected (next year) Ⓡ haircuts/dollar haircuts/dollar Ⓡ Inputs and Current (this Expected (next Outputs year) year) Hairstyles per 280 320 Labor costs per $970 $1,020 M Energy costs per…

0.5 0.5 Given a production function: Y = AK N If output grows at 5%, capital grows at 2% and the number of workers grows at 4%, then technology (or total factor productivity) grows at % ? (Answer in integer only, no decimal place.) Your Answer: Answer Given a production function: Y = AK0.5 N0.5. If output grows at 5%, capital grows at 2% and the number of workers grows at 4%, then technology (or total factor productivity) grows at %? (Answer in integer only, no decimal place.) Your Answer: Answer

Economics Modify the Lewis model and assume that there is a strictly positive marginal product of labor in the traditional sector. Use figures with production functions in the traditional and the modern sectors to show what the equilibrium is when no one wants to move away from agriculture. What assumptions do you have to make about production functions to arrive at the conclusion that fewer people will end up in agriculture? Use the same starting point as in the above question. Derive the demand for labor in the traditional and in the modern sectors. Show graphically what the characteristics of the equilibrium would look like when no one wants to change sectors.

Suppose that the economy's production function is given by Y=K²N¹-a where Y is output, K is capital, and N is labor. Assume that a = 1/3. The production function transformed into output per worker is (Property format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with N character.)