1. Over a period of 10,000 years, the population of Brobdingnag is estimated tohave increased from 4 million to 170 million. Assuming that the level ofincome per worker was constant, there are only two factors of production,Land (X) and Labour (L), and the exponent on land in the production functionis one-third, what was the annual growth rate of productivity, A?a) 0.17%b) 0.42%c) 0.03%d) 0.01%

The correct answer is (c) 0.03%.To solve this problem, we can use the Cobb-Douglas production…

Answered: 1. Over a period of 10,000 years, the…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.8P

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need help on both please
Based on the notations and assumptions used in class, which of the following is/are TRU regarding the production function y=k, where 0 < a <1? (i) It is expressed in per capita form. (ii) The function exhibits constant returns to scale. (iii) Production per worker depends on the amount of capital per worker. O a. (i), (ii), and (iii) O b. Only (1) O c. Only (iii) Od. Only (ii)
A- what is prodcution technology? and give an example for the concept. B- What is the labor-intensive technology and what is the capital-intensive technology? explain the difference by providing for each concept an example. And thank you!
2. An economy has a production function:Yt = 3(squaredKt)(squaredLt). The economy has a saving rate of 24 percent, a depreciation rate of 3 percent,and Lt = 1 for all period (no population growth). There is no technologicalprogress. (a) What is the per-worker production function, yt = f(kt)? Define yt =YtLtand kt =KtLt.(b) Find the equation for the evolution of capital per worker in terms of ktand kt+1. (c) Find the long-run growth rate of output per worker. Now the economy has the following production function:Yt = 3Kt but savings rate, depreciation rate, and population remain the same. (d) What is the per-worker production function, yt = f(kt)? Define yt =Yt/Lt (e) Find the equation for the evolution of capital per worker in terms of ktand kt+1. (f) Find the long-run growth rate of output per worker. (g) Explain why the economy with production function (2) explain persistent growth without the assumption of exogenous technologicalprogress. How does this differ from the economy…
I need help with parts (f) and (g) of question 2
An economist fits the following production function to data from Australia and New Zealand, Y = AK" L1-« She estimate that for Australia, a = = 0.7. She estimates that for New Zealand, a = = 0.2 Based on this information, which of the following statements is most likely to be correct. There is not enough information to comment on the relative capital intensities Production wilI be relatively more capital intensive in New Zealand than in Australia Production will be relatively more capital intensive in Australia than in New Zealand Production will be equally as capital intensive in each country since they both experience constant returns to scale
Based on the notations and assumptions used in class, which of the following is/are TRUE regarding the production function y = ka, where 0 < a <1? (i) It is expressed in per capita form. (ii) The function exhibits constant returns to scale. (iii) Production per worker depends on the amount of capital per worker. O a. (i), (ii), and (iii) O b. Only (i) O c. Only (iii) O d. Only (ii)
Assume the rate of technological progress is constant in a SSGM with Cobb- Douglas production function. Show that a steady-state cannot be identifiede if the technological progress is capital augmented, i.e. F(K, L) = [A(t)K(t)]*L(t)'_ª, where A(t) is the efficiency term growinge with a constant rate g.t
In our one country model of technology growth, y = A(1- γA). Suppose that the country temporarily raises its level of γA. (a) Draw two graphs, one for y and one for A, showing how the time paths of output per worker (y) and productivity (A) will compare under this scenario with what would have happened if there had been no change in γA Please do fast ASAP fast
Based on the notations used in class, let y=k06, 6-0.3, 8-0.45, n = 0.015, and k = 2 initially. Then suddenly the saving rate goes up to s' 0.5. Then the growth of steady-state capital per worker will be: O a. 40% O b. None of the other choices are correct. O c. 50% O d. 30 %
as Figure 11-1 D Real GDP per hour worked, YIL v $40 IC 8 T 1 60 Production function, Production function, Production function, Capital per hour worked, KIL Refer to Figure 11-1. Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from Production function 1 to Production function 2 from Production function 2 to Production function 1. from Production function 1 to Production function 3. up along any of the production functions
QUESTION 4 Capital per year K₂ Figure 7.3.2 4₂ L₂ C₁ Labor per year Refer to Figure 7.3.2 above. Which of the following changes, which causes the move from A to B? O a. The quantity to be produced Ob. A decrease in the cost of capital r Oc. The budget of the producer d. A decrease in the wage rate w

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