EBK MACROECONOMICS (FOURTH EDITION)
4th Edition
ISBN: 9780393616125
Author: Jones
Publisher: YUZU
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Question
Chapter 4, Problem 2E
(a)
To determine
Derive the production function curve.
(b)
To determine
Derive the production function curve.
(c)
To determine
Derive the production function curve.
(d)
To determine
Derive the production function curve.
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Problem 3:
Write each production function given below in terms of output per person y =
Y/L and capital per person k = K/L. Plot these per person versions in a graph
with y on the vertical axis and k on the horizontal axis. (You can assume à is
a constant positive number).
(a) Y=AK 1/3 L2/3 and Y = AK3/4L1/4 (plot them on the same graph).
(b) Y = K.
(c) Y = KL
(d) YK-AL
The graph below represents per-worker production functions for the same country. Answer the following questions using this graph.
Which 1 concept explains that the area between B and C has a flatter slope than the area between A and B?
Answer:
Law of Diminishing Marginal Returns
What has to happen for a country to move from point E to B to D?
Answer:
The movement through which 3 points (out of 5 given) would indicate the largest increase in productivity?
Answer:
The “per person” versions of production functions: Write each productionfunction given below in terms of output per person y ; Y/L and capital perperson k ; K/L. Show what these “per person” versions look like in a graphwith k on the horizontal axis and y on the vertical axis. (Assume A is somefxed positive number.)(a) Y = K
1/3L2/3 and Y = K
3/4L1/4 (on the same graph)
(b) Y = K(c) Y = K + AL(d) Y = K − AL
Chapter 4 Solutions
EBK MACROECONOMICS (FOURTH EDITION)
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