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15. The firm's profit maximization problem is: max n = F(r, w)-rk-wL {r, w} a. maxx=rK + wL-F(K, L) {r, w} max π = F(K, L)-rk-wL {r, w} b. C. max π = F(K, L)-rk-wL {K, L} e. All of these answers are correct. d. 16. As measure for total factor productivity, we can use the quantity of d. kilowatt hours used e. None of these answe a. Computers b. Factories

15. The firm's profit maximization problem is: max n = F(r, w)-rk-wL {r, w} a. maxx=rK + wL-F(K, L) {r, w} max π = F(K, L)-rk-wL {r, w} b. C. max π = F(K, L)-rk-wL {K, L} e. All of these answers are correct. d. 16. As measure for total factor productivity, we can use the quantity of d. kilowatt hours used e. None of these answe a. Computers b. Factories

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 8P
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15. The firm's profit maximization problem is: max π = F(r, w) -rk-wL {r, w} a. b. C. d. e. in an economy. 16. As measure for total factor productivity, we can use the quantity of kilowatt hours used None of these answers is correct d. e. max π = rK + wL - F(K, L) {r, w} max π = F(K, L)-rk-wL {r, w} max π = F(K, L)-rk-wL {K, L} All of these answers are correct. a. Computers b. Factories C. Machines 17. As an economist working at the International Monetary Fund, you are given the following data for Burundi: per capita GDP relative to the United States, is 0.01. If we were to assume that total factor productivity (TFP) in Burundi is the same as in the US, A = 1, and the technology is y= Ak¹/3, then predicted per capita GDP would be 0.18. Under this assumption the model clearly overestimates per capita GDP in Burundi. So what is the implied total factor productivity in Burundi relative to the US that makes the model consistent with the data? a. 0.44 b. 0.98 C. 0.06 18. Assume the production function of an economy is given by Y = AK¹/³1²/³. If A = 2 and I = 1, the depreciation rate is d = 0.05, and the saving rate is 5 = 0.1, then the steady-state level of capital is about: 0.1 a. d. 8.0 b. 2.5 e. 0.6 C. 1.6 b. 19. The steady-state level of output per worker in the Solow model, with the production function Y =ĀK/³1²/3, is given by: a. 1/2 = ^ (1) ¹/² C. y* d. 0.00 18.00 e. 1/2 y* = P³R (1) ¹² L ó/2 ī y* = 43/2 (3) ¹/2 t d. y² = A²/2 (2) ¹/²2 y" e. 1/3 ¹ y² = à (3) ¹²
Transcribed Image Text:15. The firm's profit maximization problem is: max π = F(r, w) -rk-wL {r, w} a. b. C. d. e. in an economy. 16. As measure for total factor productivity, we can use the quantity of kilowatt hours used None of these answers is correct d. e. max π = rK + wL - F(K, L) {r, w} max π = F(K, L)-rk-wL {r, w} max π = F(K, L)-rk-wL {K, L} All of these answers are correct. a. Computers b. Factories C. Machines 17. As an economist working at the International Monetary Fund, you are given the following data for Burundi: per capita GDP relative to the United States, is 0.01. If we were to assume that total factor productivity (TFP) in Burundi is the same as in the US, A = 1, and the technology is y= Ak¹/3, then predicted per capita GDP would be 0.18. Under this assumption the model clearly overestimates per capita GDP in Burundi. So what is the implied total factor productivity in Burundi relative to the US that makes the model consistent with the data? a. 0.44 b. 0.98 C. 0.06 18. Assume the production function of an economy is given by Y = AK¹/³1²/³. If A = 2 and I = 1, the depreciation rate is d = 0.05, and the saving rate is 5 = 0.1, then the steady-state level of capital is about: 0.1 a. d. 8.0 b. 2.5 e. 0.6 C. 1.6 b. 19. The steady-state level of output per worker in the Solow model, with the production function Y =ĀK/³1²/3, is given by: a. 1/2 = ^ (1) ¹/² C. y* d. 0.00 18.00 e. 1/2 y* = P³R (1) ¹² L ó/2 ī y* = 43/2 (3) ¹/2 t d. y² = A²/2 (2) ¹/²2 y" e. 1/3 ¹ y² = à (3) ¹²
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