When capital increases by AK units, output increases by _. Choose the correct one. ΔΝ units ΜΕΝ Χ ΔΝ units ΜΡκ Χ ΔΚ units ΔΚ units

Draw an example production function in terms of output and capital.GIVE 2 specific properties which define its shape; explain these usingthe definition and properties of MPK.

At some point, if all factors of production are being used, it becomes impossible to generate additional output, so the AS curve becomes (two words, 1 mark). 18

Why do we assume that changes to Total Factor Production are persistent? i know that its important and that it affects the outcome. is it because persistent means the changes are not temporary in the market and therefore doesnt try to readjust over time but rather it has long term affects.

Suppose the production function in an economy is Y = K0.SL05, where K is the amount of capital and L is the amount of labor. The economy begins with 25 units of capital and 25 units of labor. Round answers to two places after the decimal when necessary. a. How much output does the economy produce? units of output

asap Suppose the economy's production function is Y = AKO.3NO.7. If K=2000, N = 100, and A = 1, then Y=246. If K and N both rise by 20%, and A is unchanged, by how much does Y increase?

E2

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

Economics The assumption of constant returns to scale suggests that if Nand Kboth decrease by 3%: Select one: а. the capital-labour ratio ( K/ N) will increase. b. Y will decrease by less than 3%. С. Y will decrease by more than 3%. d. Y will decrease by exactly 3%

Capital is the sum of all the machines, plants, and office buildings in the economy. True  False