ased on a aggregate production function model where capital and labor are the only factors of production, we can be certain output ill increase if O the total factor productivity increases while the amount of labor and physical capital stock of the country remain constant O the physical capital stock of the country decreases, the total factor productivity remains constant, and the amount of labor increases
Q: a shortage exists in a market, what do we know? A. The actual price is below equilibrium price, ...
A: Shortage means demand is higher than the supply. Suppliers are not able to meet the increased demand...
Q: (Please refer to the attached image.) 1. What is the message in this cartoon? 2. Does the cartoon s...
A: Job of media is to report the truth with facts and evidences. However, sometimes they are put under...
Q: The Kasibu Cooperative has invested a 145,000 new mechanical grading/sorter system which is project...
A: Given that, The Kasibu Cooperative has invested a 145,000 Revenue increase by 14,000 Number of perio...
Q: ASSIGNMENT Opportunity cost is all about making choices and how you adequately and effectively mana...
A: Introduction: Managerial economics is described as the discipline of economics concerned with the ap...
Q: 8. If Ramil invested P20,000.00 at a nominal rate of interest of 14% compounded quarterly. What is t...
A: Given that, Ramil invested 20,000.00 Nominal interest rate = 14% or 0.14
Q: 2. Bong went to RRJ Store to buy a shirt, the tag price of the shirt says it is payable in 120 days ...
A: The shirt price is payable in 120 days but if paid in 15 days there will be a 5% discount. That mean...
Q: Compound interest With compound interest, the interest is added to principal in the calculation of i...
A: Given: Note=$11000 Rate of interest=10%
Q: 2. Explain the effects of excessive money supply and how to stop it.
A: The excessive money supply is the reason for the change in expansionary monetary are purchasing gove...
Q: In the 1970s, it was fashionable among policymakers (and sometimes still is today) to use the Philli...
A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive...
Q: Apply the mixed economy as an economic system in Bahrain economy using examples?
A: There are three type of economy one is market exonomy , command economy and mixed economy . Mixed e...
Q: A perfectly competitive firm, with MC=q operates in a market character,zed by the following market d...
A: In economics, profit maximization is the short run or long run process by which a firm may determine...
Q: what are two issues with the Law associated Dodd-Frank
A: Dodd-Frank Law: A summary of government guidelines, essentially influencing monetary organizations a...
Q: Year Price of a Price of a Shirt Hotdog 2009 $40 $3 2010 $45 $4 2011 $50 $3 1. If the base year is 2...
A: The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket...
Q: 62. Under Marginal utility analysis, utility is assumed to be a A. O Cardinal concept B. O Ordinal c...
A: Marginal Utility analysis assists us with understanding the conduct of a shopper by checking out the...
Q: a real GrOSS Dom stic OT Ș18.4 billloh. The debt service payments are $35 million with a 4% interest...
A: Here we calculate the debt-to-GDP ratio by using the given information , so the calculation of the f...
Q: 2. A consumer with the utility function U(x,,x2) = xfx faces prices p, = 4, P2 = 5 and has an income...
A: Utility Function : U(x1,x2)= x12 x23 Maximise: U(x1,x2)= x12 x23 Subject to: Budget Constraint p1x1+...
Q: . Consumer's surplus left with the consumer under price discrimination is
A: To find: Consumer's surplus left with the consumer under price discrimination is
Q: In a small economy two goods are produced: meat and potatoes. Assume the following values: Year Pric...
A: Here we calculate the nominal GDP , Real GDP and GDP deflator by using the given information , so th...
Q: Moving down a linear demand curve, what happens to the slope and the elasticity?
A: A normal demand curve is usualy a downward sloping curve from left to right. The elasticity of deman...
Q: What is the value of n with interest 10% that makes the present value equal to O 100 100 loee Given ...
A: PV = 1000 Annuity Amount = 100
Q: If the utility function (U) between food (F) and clothing (C) can be represented as U =2F + 9C, the ...
A: The utility is the amount of satisfaction received by the consumers from the consumption of goods an...
Q: Why is the presentaion of corparate results increasingly accompanied by the presentation of a social...
A: As we know that production is needed for completion of our daily life demand or for money . But thes...
Q: Florin and Guilder are two countries separated by a narrow sea. They use currencies called, respecti...
A: Meaning of Exchange Rate: The term exchange rate refers to the situation under which a particular ...
Q: 2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the MARR ...
A: When a company decides whether a project is worth the costs that will be incurred in undertaking it,...
Q: Which of the following is NOT an example of moral hazard? an insured person not using preventive car...
A: Moral hazard refers to the situation where insured party acts careless because he thinks any loss if...
Q: Assume that the loanable funds market is in equilibrium, as shown in the graph. If households become...
A: In the market of loanable funds, the price is considered to be the rate of interest and money is the...
Q: Under the FLSA, states are preempted from requiring a higher minimum wage than the federal amount. ...
A: For employees in the private sector, as well as federal, state, and local governments, the Fair Labo...
Q: 1 Los Angeles averages 266.5 sunny days per year. What is probability that Boston has at least ...
A: * SOLUTION :- (21) Based on the given information the calculation as follows.
Q: Use a supply-demand figure to show the effects of the external shock on equilibrium price and quanti...
A: Equilibrium in the goods market is determined at the intersection of demand and supply curves.
Q: Demand 100 200 300 400 500 a. How many units of good are produced at the market equilibrium? b. How ...
A: Private costs are paid by the firm or consumer and must be included in production and consumption de...
Q: A good that crosses borders one or more times as it gets progressively assembled is called an ______...
A: The full vary of activities like style, production, marketing, distribution, and support to the ulti...
Q: Using the information provided in the table below, answer the following questions. Country A Count...
A: PPF, production possibilities frontier shows different combinations of two goods that can be produce...
Q: 3. Be sure to label all points. Suppose the domestic autarky relative price M/S=1 and autarky consum...
A: Comparative advantage is when a country is able to produce a particular good or services at a lower ...
Q: Which of the following would NOT be a determinant of demand? A. the price of related goods B. t...
A: Option B does not effect demand. Price of inputs affect the Supply of a good, not demand.
Q: total revenue is maximized. Which of the following policy actions could the Central Bank use to comb...
A: Central Banks use monetary policy to adjust the inflationary pressure in the economy. Central Banks ...
Q: Consider an exchange economy with two goods, 200 agents of type A, and 100 agents of type B. The pre...
A: Introduction: Equilibrium is a stable condition of equilibrium in which opposing forces cancel each ...
Q: Let (inverse) demand be Pb 98 - 2 Qb and (inverse) supply be Pv = 26 + 2 Qv. What is 2. the quantity...
A: Equilibrium is achieved at a point where demand curve intersects supply curve. Any price below the e...
Q: Suppose a perfectly competitive firm faces the following information: An industry demand given by P ...
A: In perfect competition, equilibrium price is equal to minimum average total cost which happens when ...
Q: QUESTION 9 If total inflation over 18 years is 17.3%, what is the annual inflation rate? Write the a...
A: Inflation: It is the overall rise in the prices of goods and services/ rate of growth in prices. T...
Q: What amount of money invested today at 15% interest can provide the following scholarships: P30,000 ...
A: Engineering economics, formerly known as engineering economy, is a branch of economics concerned wit...
Q: Assume that the government sets a binding price ceiling on the interest rate that banks charge on lo...
A: A price ceiling is the set limit on how much a seller can charge for a product or service. Price cei...
Q: The first graph presents the utility maximizing combinations of bread and brie that Hayden chooses w...
A: Given: Price of bread=$1 per loaf The price of brie could either be: $4 or $6 per wheel
Q: According to a 2016 article in the Wall Street Journal, “After years of relative equilibrium, the jo...
A: The labor market illustrates how the demand and the supply of labor determine the equilibrium wage r...
Q: When British regulators were forced to suspend the license of a flu vaccine plant in Liverpool opera...
A: If the operation of the flu vaccine plant stopped then it will affect the production of flu vaccines...
Q: Demand for residential electricity at a certain time period in Hamilton County is normally distribut...
A:
Q: Price Discrimination: SouthSide Salon is a local bar and nightspot in Mankato. On weekends, it requi...
A: The economic significance of cover is that it is an indirect means of generating extra revenue for b...
Q: The table below represents national macroeconomic data for Year 1 and Year 2. Year Y K 1 4000 1500 X...
A: Total Factor Productivity is given by the letter A in the production function Y = A K0.3N0.7 So we k...
Q: Under which of the following conditions would the interdiction of illegal drugs result in a decrease...
A: In a market, a situation when quantity sold and total spending, both will decrease is the one when t...
Q: 3. (a) Using appropriate diagrams, explain the derivation of BT curve. (b) Using AD-BT-ERU and WS-PS...
A: The balance of payments is commonly known to be made up of two primary component accounts, the curre...
Q: Suppose Emma owns an investment portfolio. Last year, she earned a 3.65% portfolio return. During th...
A: answer is given below
Production function shows the functional relationship between output and inputs.
Step by step
Solved in 2 steps
- 14. If output is described by the production function Y = AK0.2L0.8, then the production function has: Select one: A. Constant returns to scale and the share of labor in GDP is 0.2. B. increasing returns to scale and the share of labor in GDP is 0.2. C. Decreasing returns to scale and the share of labor in GDP is 0.8. D. constant returns to scale and the share of labor in GDP is 0.8.Farmland is a developing country with the following production function:Y = 24L2/3K1/3with Y = Output levelL = Quantity of laborK = Quantity of machinesa. Find the real rate of return for labor. Show your calculation. b. Suppose Farmland is granted some extra machines for production.How would this affect the real rate of return for labor? Explain by using theresult in (a).Country A and country B both have the production function Y = F(K, L) = K^0,5L^0,5 A. Does this production function have constant returns to scale? Explain. B. What is the per-worker production function, y = f(k)? C. Assume that neither country experiences population growth or technological progress and that 5 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 20 percent of output each year. Using your answer from part (b) and the steady-state condition that investment equals depreciation, find the steady-state level of capital per worker for each country. Theen find the steady-state levels of income per worker and consumption per worker. D. Suppose that both countries start off with a capital stock per worker of 2. What are the levels of income per worker and consumption per worker? Remembering that the change in the capital stock is investment less depreciation, use a calculator or a computer spreadsheet…
- In class we argued that if people could accumulate human as well as physical capital, the production function would look like the “AK” production function. • (a) If the production function is AK and the savings rate is constant at rate “s”, and the rates of depreciation and populati on growth are δ and n respectively, what would the growth rate of the economy be? • (b) What would be the macroeconomic consequences of decreasing the savings rate in this economy? • (c) What would be the consequences of an increase in fertility in this economy? • (d) Would the consequences of decreasing fertility be UNAMBIGUOUSLY GOOD? • (e) Can human capital grow without bounds? Explain why or why not (make sure you discuss the physical nature of human capital). • (f) What is the growth rate of the economy (in the absence of technological progress) if human capital cannot grow without bounds?Ecuador's economy has a production function that is as follows: Y = K2/5L3/5 The men in Ecuador generally stay home performing household chores while women work. Since the Ecuadorian state television stopped airing soap operas, many men decided to join the workforce and thus the labor force increased by 6.5%. However, recent storms have destroyed much of the capital stock of the country and thus the capital stock shrank by 2.5%. A. Assuming there is no change in total factor productivity in Ecuador, how would the output of Ecuador's economy change? B. How would labor productivity (output per worker) be affected by the increase in labor and decrease in capital stock? Explain. C. Assuming instead that Ecuador's economy grew by 4.9%, what would be the change in total factor productivity in the economy?1. Country A and B both have the production functionY = F (K, L) = K ½L ½or Y = K0.5 L0.5 a) What is the per-worker production function, y= f (k)? Please make sure to write specificfunctional form of the per-worker production function. b) Assume that neither country experiences population growth nor technological progressand that 4 percent of capital depreciates each year. Assume further that country A saves 24percent of output each year and country B saves 16 percent of output each year. Using youranswer from part a) and the steady-state condition, find the steady-state level of capital perworker for each country. Then find the steady-state levels of income per worker for eachcountry and steady-state level of consumption per worker for each country.
- The relation between technology and the quantity of factor inputs to Real GDP is specified by the production function. O True O False 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.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?Consider an economy with a Cobb-Douglas production function with α = 1/3 that begins in steady state with a growth rate of technological progress of g of 2 percent. Consider what happens when g increases to 3 percent. (a) What is the growth rate of output per worker before the change? What happens to this growth rate in the long run? (b) Perform a growth accounting exercise for the economy, decomposing the growth rate in output per capita into components contributed by capital per capita growth and technology growth. What is the contribution of the change in g to output per capita growth according to this formula? (c) In what sense is the growth accounting result in part b producing a misleading picture of this experiment? Explain why this is the case.
- Consider an economy in which the labour force grows by 2.7 percent per annum, physical capital grows by 4 percent per annum and human capital grows by 1.8 percent per annum. Suppose 45 percent of national income goes to labour and 40 percent to capital. Use a constant returns to scale production function to answer the following growth accounting questions: (a) If the Solow residual were zero what rate of growth would the economy achieve? (b) The country's actual rate of growth has been 4.5 percent per annum, which is faster than the growth rate generated by the accumulation of capital and labour stocks. Calculate the value of the residual.7. 1. Consider a neoclassical growth economy described by the following.•Yt = K0.3t ·L0.7t (aggregate production function)•s = 0.35 (saving rate)•δ = 0.10 (depreciation rate)•n = 0.01 (population growth rate)•L1 = 120 (initial population)•K1 = 160 (initial capital stock)•g = 0 (technological growth rate)Compute K, Y , k, y, and c for the first three periods. Please report numerical answersto two decimal points. (a) K1 = ; Y1 = ; k1 = ; y1 = ; c1 =(b) K2 = ; Y2 = ; k2 = ; y2 = ; c2 =(c) K3 = ; Y3 = ; k3 = ; y3 = ; c3 =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.