Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 16, Problem 4E
To determine
Suppose labor's share of
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- Suppose an economy’s production function is Y = AKαL1−α. If the annual rate of economic growth is 3.5 per cent and labour and capital are both growing by 2 per cent annually, what contribution to growth is made by total factor productivity? You can assume that labour receives 75 per cent of the total income generated in this economy.arrow_forwardWhich one of the following is not a determinant of productivity? A greater stock of labor. More human capital per worker. More physical capital per worker. Technological advancement. All of the answers are determinants of productivity.arrow_forwardFor each part below, determine whether the following actions will increase or decrease productivity, and name the component of productivity that each affects. a. The local government builds a new school. b. Teachers in the new school hold classes for young students. c. A manufacturer installs robots on its assembly line. d. A research team designs a more efficient system of irrigation. e. A soda company discovers a new source of underground water that can be used to make its products. f. A professor writes a new and improved economics textbook. g. A large number of people have less access to health care. h. A worker receives on-the-job training to be a mechanic. Impact on productivity (Click to selec (Click to selec (Click to selec (Click to selec (Click to selec (Click to selec (Click to selec (Click to selec ✓ Component of productivity (Click to select) Physical capital Technology Human capital Natural resources (Click to selec (Click to selec (Click to select) (Click to selec (Click…arrow_forward
- For a given level of technology, the level of labor productivity would increase in all of the following situations except when: A. there is an increase in natural resources per worker B. there is an increase in human capital per worker C. there is an increase in physical capital per worker D. there is an increase in laborarrow_forwardWhat are the two major determinants of the overall growth of the economy according to the view of economic growth based on labor data?arrow_forwardWhat is productivity and why is it an important determinant of economic growth?arrow_forward
- Why Are the Factors of Production Important to Economic Growth?arrow_forwardWhich of the following does NOT influence the growth of labor productivity? discovery of new technologies saving and investment in physical capital population growth expansion of human capitalarrow_forwardWhat has happened to the rate of productivity growth over the past 50 years? How might you explain this phenomenon?arrow_forward
- An increase in labor productivity means businesses will produce more output with the same amount of labor. Explainarrow_forwardList the four major elements that determine productivity growth. Choose one of these factors and explain, using specific examples, the role that it has played in increasing productivity in the united states.arrow_forwardWhat are the effects of an increase in labor productivity on potential GDP, the quantity of labor, the real wage rate, and potential GDP per hour of labor?arrow_forward
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