2. Suppose the table represents the production function of both Mexico and Spain. Use the following information to answer the next question. K = Capital (trillions) Y = Output (trillions) Country L Mexico Spain = Population (millions) 105 45 0.18 0.74 1.0 1.7
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- Question 3: Harrod-Domar Consider the following production (in per capita terms): For capital stocks between 0 and 10, y; = 0.5 • ke For capital stocks equal and above 10, y; = 5 a Graph the production function in per capita terms (where y; is in the vertical axis and k; in the horizontal axis). b. Graph the average product of capital y:/k; as a function of k.Suppose a country has a population of 120 people, a working-age population of 100 people, its labor force participation rate is 0.5 (50%), and the quantity of output is 60 units. Suppose that the production function of the economy is given by Y=2N, where Y represents the quantity of output and N represents the number of workers needed to produce the output. I know the answer is 0.4 but I don't understand how to get it. Thank you!Country A and country B both have the production function Y = F(K, L) = K^0,5L^0,5 A. Does this production function have constant returns to scale? Explain. B. What is the per-worker production function, y = f(k)? C. Assume that neither country experiences population growth or technological progress and that 5 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 20 percent of output each year. Using your answer from part (b) and the steady-state condition that investment equals depreciation, find the steady-state level of capital per worker for each country. Theen find the steady-state levels of income per worker and consumption per worker. D. Suppose that both countries start off with a capital stock per worker of 2. What are the levels of income per worker and consumption per worker? Remembering that the change in the capital stock is investment less depreciation, use a calculator or a computer spreadsheet…
- 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:Consider a hypothetical small island nation in which the only industry is cloud computing. The following table displays information about the economy over a two year period.. Complete the table by calculating physical capital per worker as well as 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. Year 2046 2047 Physical Capital (Servers) 120 400 Labor Force (Workers) Based on your calculations, productivity from 2046 to 2047. 60 100 Physical Capital per Worker (Servers) Labor Hours (Hours) 3,300 3,500 Output (TB of data storage) 23,100 49,000 in physical capital per worker from 2046 to 2047 is associated with Suppose you're in charge of establishing economic policy for this small island country. Labor Productivity (TB of data storage per hour of labor) Which of the following policies would lead to greater productivity in the…Imagine two countries, i and j. You have the following information: si = 2 sj hi= hj 2Ai = Aj What can you infer about long-run income per worker differences between these countries? Explain formally.
- Consider the following production (in per capita terms): For capital stocks between 0 and 10, y; = 0.5 k: For capital stocks equal and above 10, y; = 5 a. Graph the production function in per capita terms (where y, is in the vertical axis and k; in the horizontal axis). b. Graph the average product of capital y:/k; as a function of ke1. O LounchPad • Country A and country B both have the production function Y = F(K, L) = K/³L²/3. a. Does this production function have constant returns to scale? Explain. b. What is the per-worker production function, y = f(k)? c. Assume that neither country experiences population growth or technological progress and that 20 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 30 percent of output each year. Using your answer from part (b) and the steady-state condition that investment equals depreciation, find the steady-state level of capital per work- er for each country. Then find the steady-state levels of income per worker and consumption per worker. d. Suppose that both countries start off with a capital stock per worker of 1. What are the levels of income per worker and consumption per worker?Labor productivity on the ABC assembly line was 22 units per hour in 2008. In 2009, labor productivity was 21 units per hour. What was the productivity growth/ decline from 2008 to 2009.
- Suppose that the production function for an economy is given by Y F(K, L) = AK'/BL2/3 Where Y is output, A is the level of technology, K is capital and L is labor. If the value of L is 100, the value of K is 400, and the value of A is 2, what is the per capita value of output in this economy?Why was Land Use Reform a successful policy in several Asian countries in promoting economic growth? By making public land available for farming, peasant farmers could rotate crops more easily. By making all farmland publicly owned, farmers could collectively work to maximize their yields. O By reallocating farmland for use in manufacturing, industrialization was incentivized. O By taking farmland away from landlords and giving it to peasant farmers, those farmers had an incentive to improve their yields.Suppose China has a production function of the form: GDP per worker = Tx (physical capital per worker)0.4 x (human capital per worker)0.6 Using this production function, which of the following statements are true? (Select all that apply) Unlike physical and human capital, technology (T) is not directly measured GDP per worker will increase if the labor force grows Output per worker will grow more if human capital increases by 1% than if physical capital increases by 1% None of the above