Before 1700 per capita GDP across countries differed by a factor of: a. 1 d. 50 b. 2-3 e. C. 10 100. The labor share of income is defined as and it is approximately equal to in the US. (Notations: Y is GDP, L is labor force, K is the stock of capital, w is the real wage, and r is the rental price of capital) a. L/Y; 50% b. wL/rK; 40% c. K/Y; 30% d. WL/Y; 70% e. w/Y; 30%
Before 1700 per capita GDP across countries differed by a factor of: a. 1 d. 50 b. 2-3 e. C. 10 100. The labor share of income is defined as and it is approximately equal to in the US. (Notations: Y is GDP, L is labor force, K is the stock of capital, w is the real wage, and r is the rental price of capital) a. L/Y; 50% b. wL/rK; 40% c. K/Y; 30% d. WL/Y; 70% e. w/Y; 30%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please help me answer these two question
Transcribed Image Text:**Question 1:**
Before 1700, per capita GDP across countries differed by a factor of:
a. 1
b. 2-3
c. 10
d. 50
e. 100
**Question 2:**
The labor share of income is defined as _____ and it is approximately equal to _____ in the US. (Notations: Y is GDP, L is labor force, K is the stock of capital, w is the real wage, and r is the rental price of capital)
a. L/Y; 50%
b. wL/rK; 40%
c. K/Y; 30%
d. wL/Y; 70%
e. w/Y; 30%
Expert Solution
Step 1
Introduction
GDP is the total goods and services produced in an economy at market prices. Economic growth can be said the rise in the per capita income of an economy. Labor share of income can be calculated as when all the wages that give to the labor are divided by the income.
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