Suppose the production function of a country is Y = (K^0.5)*(L^0.5). The economy begins with 64 units of capital (K) and 100 units of labor (L). What is the real wage? O a. 0.625 O b. None of the other choices are correct. O c. 0.8 O d. 0.4
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- The production function of a country is Y=K^(1/2)L^(1/2). If economy starts with 10 units of capital per worker, 25 percent of output is saved and 10 capital stock depriciates every year, find the first year's change in the capital stock for this country, O a. 0.47 O b. 0.84 O c. 0.36 O d. 0.11 O e. 0.22Which of the following statements about labour productivity (Y/L), also known as the average product of labour are correct? Select one or more: O a. A rise in labour productivity must imply job losses O b. If Y is fixed A rise in labour productivity must imply job losses O c. With a standard production function, if L falls, without any change in technology or capital intensity, labour productivity must rise O d. A rise in labour productivity at the same time as a rise in employment is logically impossibleSuppose an economy's output is determined by a Cobb-Douglas production function Y-AKL¹0 where A-8 and a-0.2. All other things remaining unchanged, if labour input increases by 5 percent, output will rise by: Ⓒ 1% O 4% O 2% 5%
- Assume an aggregate production function where Y=(L^0.6)*(K^0.4). Then it must be true that O a. the share of capital income in total income is 40%. O b. increasing the ratio of capital to labor will reduce the marginal productivity of labor. O C. O d. the production function exhibits increasing returns to scale. there is 60% more labor employed in production than capital.Output Y K Which of the following could cause the upward shift of the production function? O a) an aging labor force b) an increase in the capital stock O c) foreign direct investment d) technological advancementLabor productivity tends to fall as the capital to labor ratio rises. O a. True O b. False
- According to the law of diminishing returns, along the aggregate production function, an additional unit of Select one: O A. labour decreases output. OB capital produces more output than an additional unit of labour. O C. labour produces less output than the previous unit. O D. labour increases the real wage rate. O E. labour produces more output than the previous unit.Assume that real GDP per capita in Country X is currently $50,000 per person. Also, assume that real GDP per capita in Country X grows at a rate of 2% per year. Rounding to the nearest 2 decimals, the real GDP per person in Country X in 10 years will be approximately 3.7 points Save Answ O a. $66,124 O b. $60,000 O. $58,272 Od. $61,000The population growth rate increases by 10%. What would be the impact on the country's production function? Select one: a. movement downward along the same curve O b. shift outwards O c. shift inwards O d. remain unchanged O e. movement upwards along the same curve
- Illegal drug traffickers start to bribe judges and corrupt the justice system. What would be the impact on the country's production function? Select one: O a. shift inwards O b. movement downward along the same curve O . remain unchanged O d. shift outwards O e. movement upwards along the same curveRefer to the table below to answer the following questions. O a. 2 teapots. Ob. 9 teapots. Oc 7 teapots. O d. 4 teapots. O e. 6 teapots. Table 10.2.1 Labour (workers per day) 1 2 3 Output (teapots per day) 0 3 12 19 23 25 Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule. The marginal product when Tania's increases the number of workers from 3 to 4 per day isConsider the per-worker production function graph. If there is an increase in capital per hour worked, holding technology constant, then O A. there is a movement from A to B. O B. there is a movement from D to C. O C. there is a movement from A to C. O D. there is a movement from B to D. If there is an increase in technology, holding constant the quantity of capital per hour worked, then O A. there is a movement from A to C. O B. there is a movement from C to D. O C. there is a movement from D to B. O D. there is a movement from A to B. Real GDP per hour worked (Y/L) YIL₂ YIL₁ Per-worker Production function₂ C D B A Per-worker Production function KIL₁ KIL2 Capital per hour worked (K/L)