Question 1. capital is 0.3. If capital grows by 1%, labour grows by 2% and growth of total factor productivity is 1.3%, by how much does total output grow? k] Assume a Cobb-Douglas production function, where the share of A. 4.30%. B. 3.00 %. C. 2.60 %. D. 1.16 %. E. There is not enough information to calculate it. Question 2. [ in per capita terms can be written as y = k. If the savings rate is s = 0.25, the rate of growth of population is n = 0.05 and the rate of depreciation is d = 0.10, how high is the rate of growth of output per capita? Assume an endogenous growth model with a production function that A. 20% B. 15% C. 10% D. 0% E. There is not enough information to calculate it.
Question 1. capital is 0.3. If capital grows by 1%, labour grows by 2% and growth of total factor productivity is 1.3%, by how much does total output grow? k] Assume a Cobb-Douglas production function, where the share of A. 4.30%. B. 3.00 %. C. 2.60 %. D. 1.16 %. E. There is not enough information to calculate it. Question 2. [ in per capita terms can be written as y = k. If the savings rate is s = 0.25, the rate of growth of population is n = 0.05 and the rate of depreciation is d = 0.10, how high is the rate of growth of output per capita? Assume an endogenous growth model with a production function that A. 20% B. 15% C. 10% D. 0% E. There is not enough information to calculate it.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![Question 1.
k] Assume a Cobb-Douglas production function, where the share of
capital is 0.3. If capital grows by 1%, labour grows by 2% and growth of total factor productivity
is 1.3%, by how much does total output grow?
A. 4.30%.
B. 3.00 %.
C. 2.60 %.
D. 1.16 %.
E. There is not enough information to calculate it.
Question 2. [
in per capita terms can be written as y = k. If the savings rate is s = 0.25, the rate of growth
Assume an endogenous growth model with a production function that
of population is n = 0.05 and the rate of depreciation is d = 0.10, how high is the rate of
growth of output per capita?
A. 20%
B. 15%
C. 10%
D. 0%
E. There is not enough information to calculate it.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5af106f5-0ef7-4213-8a6d-7d372a0174c6%2F560e1b01-f37e-4edb-91b5-6835ca3d35a4%2Fg84aile_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1.
k] Assume a Cobb-Douglas production function, where the share of
capital is 0.3. If capital grows by 1%, labour grows by 2% and growth of total factor productivity
is 1.3%, by how much does total output grow?
A. 4.30%.
B. 3.00 %.
C. 2.60 %.
D. 1.16 %.
E. There is not enough information to calculate it.
Question 2. [
in per capita terms can be written as y = k. If the savings rate is s = 0.25, the rate of growth
Assume an endogenous growth model with a production function that
of population is n = 0.05 and the rate of depreciation is d = 0.10, how high is the rate of
growth of output per capita?
A. 20%
B. 15%
C. 10%
D. 0%
E. There is not enough information to calculate it.
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