3. Answer all parts of this question. a) In a production function relating labour input to output, show diagrammatically the impact of an improvement in technology on total output and the average product of labour. b) Using a diagrammatic treatment show how, in a Malthusian model, a one-off improvement in technology, as in part a), will only have a temporary impact on living standards. c) Use the same diagrammatic framework to explain the role of technological improvements, capital and demographic responses, in the historical experience of countries that have escaped from the Malthusian trap.

3. Answer all parts of this question. a) In a production function relating labour input to output, show diagrammatically the impact of an improvement in technology on total output and the average product of labour. b) Using a diagrammatic treatment show how, in a Malthusian model, a one-off improvement in technology, as in part a), will only have a temporary impact on living standards. c) Use the same diagrammatic framework to explain the role of technological improvements, capital and demographic responses, in the historical experience of countries that have escaped from the Malthusian trap.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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