Draw an example production function in terms of output and capital. GIVE 2 specific properties which define its shape; explain these using the definition and properties of MPK.
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Draw an example production function in terms of output and capital.
GIVE 2 specific properties which define its shape; explain these using
the definition and properties of MPK.
Step by step
Solved in 3 steps with 15 images
- In macroeconomics, the connection from inputs to outputs forthe entire economy is called _______________. a)physical capital b)a production function c)human capital d)an aggregateproduction functionGive only typing answer with explanation and conclusion The production function in an economy is given by Y = K0.4L0.6, where Y is output level, K is capital input, and L is labour input. The saving rate is 24%, the annual population growth rate is 4%, and annual depreciation rate is 2%.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.
- Write the production function (human capital (H) being included in TFP) and explain the content of the each factor of production.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).PPF – what does this abbreviation stand for and what does this mean and describe it briefly?Also describe each component of the given production function P(L,K) = BLa Kb
- The aggregate production function is y=3KL. If they are 30 units of capital and 40 units of labor, what is aggregate output? What is labor productivity? What is capital productivity?Indicate whether the following statement is TRUE or FALSE and explain your answer: ‘Consider threeinputs of production: labour, physical capital and natural resources, and an economy with decreasingreturns to scale. If you increase all three inputs x times then the total gross domestic product (GDP) inthe economy will increase exactly x times, but GDP per capita will decrease.’Using the production function Real GDP = T (L, K), define the term production function and describe what each of the variables (T, L, and K) represents. When graphed with Real GDP on the vertical axis and labor on the horizontal axis, which variable(s) can shift the production function and which variable(s) can cause a movement along the production function?
- In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________. Question options: a) physical capital b) a production function c) human capital d) an aggregate production functionBy choosing a point along the total physical product curve, physical output is Quantity Outputs y O Output= A f {Land, Labor, Capital, Technology, Entrepreneurship) where A represents the productivity of resources. Quantity Inputs 2.3 2.4 T.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.