Suppose that a researcher, using data on the number of years of education a person has received and their annual earnings from 150 individuals, estimates the OLS regression: Earnings=40.68 + 1.46 Education, where Earnings is measured in thousands of dollars. If the number of years of education a person receives increases by three, on average, the annual earnings of the individual would (1) by $ Note: Report answer in dollars. Suppose that Meghan wants to earn at least $65,000 annually and she has recently earned a Bachelor's degree in Economics, completing 16 years of education in total. She is considering whether she should pursue a Master's degree as well, which would involve studying for two more years. Which of the following statements is true? OA. She could have reached her income target without a Bachelor's degree by receiving education for only 12 years. O B. She is able to reach her income target with her current level of education. OC. She will reach her incom target once she spends more years earning a Master's degree. O D. She will not able to reach her income target even after spending two more years earning a Master's degree.

QUESTION 1 For the production function Q = KO.2L0.1 and the budget 133 = 7K + 5L find the optimal employment of L. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 = 1.1).

Sketch a production function relating output to labour input. Now imagine that the amount of capital per person increases, thanks to the government borrowing to invest in more capital. Use dotted lines on the same diagram to show the impact on (i) total output and (ii) the average product of labour. Explain your answer.    Imagine that the demographic response to a higher standard of living is strongly positive. Using a different colour of line on the same diagram, show how this demographic response to higher incomes would go on to affect incomes in the future.   The population is aware that the government borrowing required to finance this capital investment will need to be paid back via tax rises, so they respond by reducing their spending. Using a “Keynesian cross” framework and sketch diagram, model this response as a fall in autonomous consumption, c0.

Ceteris paribus, an increase in productivity would be represented by a movement from A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.

PS3 (2) Question: What is the marginal product of capital? Given: * The marginal product of labor in the production of computer chips is 50 chips per hour. * The marginal rate of technical substitution of hours of labor for hours of machine capital is 1/4. * MRTS MPL/MPK =