Consider the production function Y = z. K³NLwhere Y is output, z is a parameter capturing technology, K is capital, N is labour and L is the area of land.If we double the technology factor, z, then output will double.Select one:O TrueO FalseIf we increase the population, and therefore the workforce, then if nothing else changes, the average product of labour must increase.Select one:O TrueO FalseWe would need to increase capital input by a factor of 8 to double output.Select one:O TrueO FalseIncreasing technology will increase labour productivity.Select one:O True

1. True2. False3.False4. TrueExplanation:Approach to solving the question: Detailed explanation:…

Answered: Consider the production function Y = z.…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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USE R LANGUAGE TO SOLVE THE equation The output of a production process, Q is given by the function2K^(-3)L^(5/2)/2K log4 6L^2where K and L denote capital and Inbour. Calculate the output when the capital and labour are 10 and 20 units, respectively.
Consider the per-worker production function graph. If there is an increase in capital per hour worked, holding technology constant, then O A. there is a movement from A to B. O B. there is a movement from D to C. O C. there is a movement from A to C. O D. there is a movement from B to D. If there is an increase in technology, holding constant the quantity of capital per hour worked, then O A. there is a movement from A to C. O B. there is a movement from C to D. O C. there is a movement from D to B. O D. there is a movement from A to B. Real GDP per hour worked (Y/L) YIL₂ YIL₁ Per-worker Production function₂ C D B A Per-worker Production function KIL₁ KIL2 Capital per hour worked (K/L)
Economics, physical capital represents the uildings or machines used by a business to produce product. The marginal product of physical capital presents the rate of change of output product with spect to physical capital (informally, if you increase e size of your factory a little, how much more Foduct can you create?). articular model tells us that the output product Y is given, a function of capital K, by Y = AKªL'-a ere A is a constant, L is units of labor (assumed to be stant), and a is a constant between 0 and 1. Determine marginal product of physical capital predicted by this del. ned with CamScanner
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.
Writing in 1776, Adam Smith was concerned not only with the profound effects of the division of labor on productivity (as your textbook notes) but also its stultifying effect on the human capacity. InThe Wealth of Nations, Smith warned that performing a few simple operations over and over again could render any worker, no matter his or her native intelligence, “stupid and ignorant.” a. Does the division of labor in today’s economy continue to have both these effects? b. What are the policy implications? (Radical)
Assume that Economyland’s production function is Y = F (K, L) = K 0.5 L 0.5Where Y is output level, K is the amount of capital input, and L is the amount of laborinput. a) What is the per-worker production function, y= f (k) for Economyland? b) Assume that 10 percent of capital depreciates each year and savings rate is 20 percent,find the steady-state level of capital per worker for Economyland. Then find the steady-state levelof income per worker and steady-state level of consumption per worker. c) Is it possible to save too much? Why?
There is growth in total factor productivity when more output is produced from the same factors of production. Select one: O True O False
There are 2 countries, D and F. There are 2 products X and Y. Each country has only a single input labor hours, Li i, where į is D for Domestic or F for Foreign and j is either X for Good X use of the labor or Y for Good Y use of labor. In country D: In country F: aD*LD, x Yp = bp*LD, Y XF = ag*LF, x YF = be*LF, Y LF = LF, x + LF, Y Xp = LD = LD, x + LD, Y At.the.moment: ap = 0.25, bp =0.5, LD = 32, aF = 0.8, br = 0.4, LF = 40. Each country is operating in autarky and has determined to divide its labor force equal between the production of X and Y. In Autarky find complete the following tables: 10. 11. In Autarky with labor divided equally between the production of each good, how much of each is produced and consumed. Autarky Production Y F 12. What are the ranges for Terms of Trade? Y< X < Y 13. What are the ranges for Terms of Trade? X< Y <
Refer to the figure at right Which of the following changes causes the move from A to B? Capital per year O A. The budget of the producer O B. The price of one of the inputs O C. The productivity of inputs O D. The quantity to be produced K Labor per y L.
Based on your understanding, does additional input of Labor entails a steady increase in the output of a firm? Why or Why not? Support your answer using the concept of production
A new highway linking two major towns is constructed. What would be the impact on the country's production function? Select one: a. remain unchanged O b. movement upwards along the same curve O c. shift outwards O d. movement downward along the same curve O e. shift inwards
Productivity is O A. the value of profit divided by the number of production workers O B. the value of output that a worker generates for each hour of work O C. an indicator of how hard workers apply themselves to their tasks O D. a measure of the speed with which inputs can be transformed into products. Productivity varies across countries because O A. human capital per worker varies substantially from country to country O B. the quantity of physical capital that workers can access varies greatly across countries O C. the level of technology differs across countries O D. all of the above. O E. A andB only.

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