For an economy described by the production model where labor's share of income is constant and equal to 2/3, the rate of increase ofwages will be equal toSelect one or more:a. The rate of increase of A or total factor productivity plus 2/3 times the rate of increase of capital per worker.O b. The rate of increase of 2/3 times output per worker.C. The rate of increase of output per worker.n d. The rate of increase of A or total factor productivity plus 1/3 times the rate of increase of capital per worker.Consider a CES production function with the elasticity of substitution equal to 2.What happens to the capital payment share if the rental to wage ratio rises?Select one:O a. It does not change.O b. It increases.O c. Not enough information is given to answer this question.O d. It decreases.

According to product exhaustion theorem, Y = (?f/?L)*L + (?f/?K)*K ……..(i) where, (?f/?L)*L =…

For an economy described by the production model where labor's share of income is constant and equal to 2/3, the rate of ir wages will be equal to Select one or more: a. The rate of increase of A or total factor productivity plus 2/3 times the rate of increase of capital per worker. b. The rate of increase of 2/3 times output per worker. c. The rate of increase of output per worker. d. The rate of increase of A or total factor productivity plus 1/3 times the rate of increase of capital per worker.

For an economy described by the production model where labor's share of income is constant and equal to 2/3, the rate of ir wages will be equal to Select one or more: a. The rate of increase of A or total factor productivity plus 2/3 times the rate of increase of capital per worker. b. The rate of increase of 2/3 times output per worker. c. The rate of increase of output per worker. d. The rate of increase of A or total factor productivity plus 1/3 times the rate of increase of capital per worker.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 11P

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