Homework Help is Here – Start Your Trial Now!
Business
Economics
6. Suppose the production function takes the form Y = AK0.5 10.5. Two countries (1 and 2) share the same productivity, but the capital stock per worker of country 1 is 100 times larger than the capital stock per worker of country 2. It follows that per capita GDP in country 1 is times the one of country 2. a. 1000 b. 100 c. 50 d. 10 e. 2

6. Suppose the production function takes the form Y = AK0.5 10.5. Two countries (1 and 2) share the same productivity, but the capital stock per worker of country 1 is 100 times larger than the capital stock per worker of country 2. It follows that per capita GDP in country 1 is times the one of country 2. a. 1000 b. 100 c. 50 d. 10 e. 2

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

Please help me answer 6-10.

6. Suppose the production function takes the form Y = AK0.5 10.5. Two countries (1 and 2) share the same productivity, but the capital stock per worker of country 1 is 100 times larger than the capital stock per worker of country 2. It follows that per capita GDP in country 1 is times the one of country 2. a. 1000 b. 100 C. 50 d. 10 e. 2 7. In the production model, an increase in total factor production (Ā) leads to an increase in: a. K (capital rented by firms) b. L (labor hired by firms) r (rental price) and K C. d. w (real wage), r, and Y e. w, r, K, L, and Y 8. In the production model, TFP explains about person explains about %. 50; 50 a. b. 75; 25 25; 75 0; 100 100; 0 c. d. e. % of income differences across countries while capital per 9. Differences in TFPs across countries are explained by differences in: a. Monetary policy b. Country sizes C. Natural resources d. Institutions, such as property rights and rule of law. Weather e. 10. In the Solow model, the equation of capital accumulation is: a. Akt Kt - Kt-1 = SYt + dKt-1 b. Akt Kt - Kt-1 = 5K+ + dyt c. AKt = Kt - Kt-1 = SYt d. AKt+1 = Kt+1 - Kt = SYt - dkt e. Akt+1= Kt - Kt-1 = SYt - dkt-1
Transcribed Image Text:6. Suppose the production function takes the form Y = AK0.5 10.5. Two countries (1 and 2) share the same productivity, but the capital stock per worker of country 1 is 100 times larger than the capital stock per worker of country 2. It follows that per capita GDP in country 1 is times the one of country 2. a. 1000 b. 100 C. 50 d. 10 e. 2 7. In the production model, an increase in total factor production (Ā) leads to an increase in: a. K (capital rented by firms) b. L (labor hired by firms) r (rental price) and K C. d. w (real wage), r, and Y e. w, r, K, L, and Y 8. In the production model, TFP explains about person explains about %. 50; 50 a. b. 75; 25 25; 75 0; 100 100; 0 c. d. e. % of income differences across countries while capital per 9. Differences in TFPs across countries are explained by differences in: a. Monetary policy b. Country sizes C. Natural resources d. Institutions, such as property rights and rule of law. Weather e. 10. In the Solow model, the equation of capital accumulation is: a. Akt Kt - Kt-1 = SYt + dKt-1 b. Akt Kt - Kt-1 = 5K+ + dyt c. AKt = Kt - Kt-1 = SYt d. AKt+1 = Kt+1 - Kt = SYt - dkt e. Akt+1= Kt - Kt-1 = SYt - dkt-1
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS