Essentials of Economics - Standalone book
10th Edition
ISBN: 9781259235702
Author: Bradley R Schiller, Karen Gebhardt
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 5P
To determine
(a)
To calculate: the percentage change in output when workforce grows by 1% and productivity does not change.
To determine
(b)
To calculate: the percentage change in output when the workforce grows by 1% and productivity rises by 3%.
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Students have asked these similar questions
Assume that total output is determined by this formula:
number of workers × productivity = total output
Hint: Assume there are 100 workers and each worker produces $100 of output.
If productivity increases by 3 percent and the number of workers increases by 2 percent a year, how fast will output grow?
Assume there are 100 workers and each worker produces 100 outputs. If the workforce is growing by 1% a year but productivity does not improve, how fast can output increase?
Suppose you are given data on the rate of growth of GDP, capital, and labour, and the share of these two factors in GDP. How would you calculate the contribution of Total Factor Productivity to growth? Explain it verbally and formally.
Chapter 2 Solutions
Essentials of Economics - Standalone book
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