Suppose country A has 8000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor. Calculate capital labor ratio in these two countries
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Suppose country A has 8000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor. Calculate capital labor ratio in these two countries.
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- Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor. which country capital abundant.Countries X and Y have the same amount of labour and the same level of technology, but country X has less capital. Country X's labour productivity will be __________ Y's and its total factor productivity will be __________ Y's. higher than; lower than higher than; the same as the same as; lower lower than; lower than lower than; the same asIf country A produces 6,000 units of goods and services using 600 hours of labor, and country B produces 5,000 units of goods and services using 450 units of labor, then productivity is higher in Country B than in Country A. Select one: a. Fales. b. True.
- Consider a small island country whose only industry is printing. The following table presents information about this small economy in two different years. Complete the table by calculating physical capital per worker and labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor.What is the cost ratio of capital goods to consumer goods in Germany? What is the cost ratio of capital goods to consumer goods in France? Solve for a terms of trade ratio that will be mutually beneficial for both nations so that they will want to engage in trade with one another.Suppose that the per-worker production (labour productivity) function in South Korea is Y over L equals A open parentheses K over L close parentheses to the power of 0.4 end exponent open parentheses H over L close parentheses to the power of 0.6 end exponent. South Korea's labor productivity rises 6% per year, capital-labour ratio rises 5% per year, and human capital per worker rises 2% per year. This information suggests that total factor productivity grows at _________ per year.
- Consider a small island country whose only industry is fishing. The following table shows information about the small economy in two different years. Complete the table by calculating physical capital per worker as well as labour productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labour. NOTE: both drop down questions choices are (an increase or, decrease)Country Has Cobb-Douglas production function: Y(it) = A(it) x K(it)1/3L(it)2/3 Where: Y(it) = realGDP K(it) = Capital L(it) = No. workers employed in country (i) on date (t) Suppose multiple countries share the same alpha = 1/3 but different levels of totalfactorproductivity (A(it)). Now Instead of the above function the production function changes to: Y(it) = A(it) x K(it)1/3 x (H(it)L(it))2/3 Y(it) = realGDP K(it) = Capital H(it) = Average hours worked p/worker (This is so the labour input is total hours opposed to employment) L(it) = No. workers employed in country (i) on date (t) These multiple countries share the same alpha = 1/3 but different levels of totalfactorproductivity (A(it)). How does this new variable in the formula impact TFP growth? What happens if the country has higher average hours per worker? what happens if the country has lower average hours per worker?For a given level of technology, the level of labor productivity would increase in all of the following situations except when: A. there is an increase in natural resources per worker B. there is an increase in human capital per worker C. there is an increase in physical capital per worker D. there is an increase in labor
- What is the opportunity cost of investing in Capital? Do you think a country can overinvest in capital? What is the opportunity cost of investing in human capital? Do you think a country can overinvest in human capital? Explain with your own language and give the example of country that overinvest in capital and human capital!Xenonia has a larger supply of labor than does Inventia. If the labor supply in both countries increases by the same amount while their physical capital stocks remain unchanged, ________. the increase in Xenonia's output will be more than the increase in Inventia's output the increase in Inventia's output will be more than the increase in Xenonia's output Xenonia's income per capita will increase, while Inventia's income per capita will decrease Xenonia's income per capita will decrease, while Inventia's income per capita will increase Exponential growth implies that ________. growth rates can only be positive growth rates will alternate between positive and negative values in every consecutive time period relatively large differences in growth rates will translate into small differences in the level of a quantity after many years of growing relatively small differences in growth rates will translate into large differences in the level of a quantity after many years of growing…
