Assume a production function with constant returns to scale. Labour's share of income is 4/5 and capital's share is 1/5. If labour grows at 3%, capital ot2%, and the rate of technological advance is 1.2%, roughly how many years would it take to double the current level of output?Multiple Choice1218233548

Capital = α = 1/5 Labor = (1- α )= 4/5 Y= A*Kα*Lα (Cobb Douglas)Y= A*K1/5L4/5 which is a…

Answered: Assume a production function with…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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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
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.)
Constant returns to scale is the point on a production function where increasing inputs will no longer increase output. True False 00
Suppose there is a permanent increase in gL. What effect does this have on long-run output per person? Is there a change in the saving rates that could offset this effect? What other implications might such a change in savings have?
The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $250,000 to develop and only $0.60 per unit to deliver to each cell phone customer. Instructions: Round your answers to two decimal places. What will be the per-unit cost of the application if it sells 100 units? Per-unit cost = $1 What will be the per-unit cost of the application if it sells 1000 units? Per-unit cost $[ What will be the per-unit cost of the application if it sells 1 million units? Per-unit cost $
Which among these production functions exhibit increasing returns to scale? (Clue: you should scale each input by a factor strictly greater than 1) Select one: a. F(K,L) = 12K + 8L b. F (K,L) = K^2+L^2 c. F (K,L) = K+4L^2 d. F (K,L) = K/L (ii) Suppose that the number of people employed is equal to 160.0 million. The number of people unemployed and looking for a job is 58 million. The number of people not in the labor force is 60 million. How much is the adult population participation rate? Select one: a. 78.4%. b. 26.6%. c. 73.75%. d. 37.5%. (iii) Which one is not considered as money Select one: a. Gold coins b. A subway token in a subway system c. Cigarettes in prisoner of war camps d. A cheque %3D
> > Question 3 Which of the following production technology exhibits constant returns to scale? I. f(K, L)=K0.25 L0.75 II. f(K, L) = K0.75 0.75 III. f(K, L) = K0.25 0.25 Only (i) Only (ii) Only (iii) All of them. Question 4 Which of the following production technology exhibits increasing returns to scale? I. f(K, L) = K0.25 L0.75 II. f(K, L) = K0.75 0.75 III. f(K, L) = K0.25 0.25 Only (i) Only (ii) Only (iii) O All of them.
Given the following production function Y=X+4X^2-0.2X^3. At what level of X does the Total physical product (TPP) reach its maximum?
Given the following Cobb-Douglas production function, how much more output is produced by adding one more unit of capital (keeping labour constant) when K=100 and L=25? Y=4K0.5 L0.5 a.1 b.2 c.3 d.4
Given the following aggregate production function: Y = K0.25 (AL) 0.75, where technology A grows at a fixed rate: = g> 0 (a) Obtain the marginal product of capital algebraically, also discussing the second derivative. (b) Transform the production function into efficiency-worker terms, showing how =ỹ depends AL on =k. K AL

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Assume a production function with constant returns to scale. Labour's share of income is 4/5 and capital's share is V5. If labour grows at 3%, capital at 2%, and the rate of technological advance is 1.2%, roughly how many years would it take to double the current level of output? Multiple Choice 23