Why is a Cobb-Douglas production function useful for analyzing economic growth? OA. The Cobb-Douglas production function provides an efficient way of measuring the correlation of total factor productivity and consumption per worker. O B. The Cobb-Douglas production function provides a good fit to show consumption per worker and how multiple variables affect it. OC. The Cobb-Douglas production function provides a good fit to aggregate data and is also a good analytical tool for growth accounting. O D. The Cobb-Douglas production function provides an efficient method of measuring output per worker in the long run.

Why is a Cobb-Douglas production function useful for analyzing economic growth? OA. The Cobb-Douglas production function provides an efficient way of measuring the correlation of total factor productivity and consumption per worker. O B. The Cobb-Douglas production function provides a good fit to show consumption per worker and how multiple variables affect it. OC. The Cobb-Douglas production function provides a good fit to aggregate data and is also a good analytical tool for growth accounting. O D. The Cobb-Douglas production function provides an efficient method of measuring output per worker in the long run.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 2P

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Similar questions

Why dues productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?
Recent evidence suggests that output per worker is ... A. positively related to the rate of investment and negatively related to the rate of population growth. B. negatively related to the rate of investment and positively related to the rate of population growth. C. negatively related to the rate of investment and not related at all to the rate of population growth. D. negatively related to both the rate of investment and to the rate of population growth. O E. positively related to both the rate of investment and to the rate of population growth. O OO
When economists speak of "long-run economic growth, they mean increasing the Select one: O a. real GDP of a country. O O O b. geographic size of a country. c. per capita real GDP of a country. d. population of a country. According to the instructors calculations, the average person in the United States spends Select one: O O O O a. approximately 5 and ½ hours b. about 3 and ½ hours c about 8 hours d. 45 minutes On a graph with savings on the x-axis and real interest rates on the y-axis, the supply of savings curve following the law of supply would: Select one: O O O O a. be horizontal a day in activities needed to continue living (what he described as not dying b. have a negative slope c. be vertical d. have a positive slope
Which statement regarding sustainable economic growth is true? a.) Sustainable sources of growth shift the AD curve to the left. O b.) Economic output is sustainable if it is caused by expansionary governmental policies. O c.) Overuse of current resources without planning for future needs is sustainable. O d.) New production techniques can cause the level of sustainable output to increase.
A country faces diminishing marginal returns when increasing it's capital stock. If this country added 1,000 units of capital last year and saw their GDP rise by $500 per person, what would you expect to happen if they had added 2,000 units of capital instead? O GDP would increase by another $500 per person O GDP would increase by less than another $500 per person O GDP would increase by more than another $500 per person O It is impossible to tell what would happen What is a potential downside of using patents to promote the creation of new technology? Without a market test, patents might be given to technology which ends up being useless. O Government money may be directed towards unproductive goals. It slows the spread and development of those ideas by restricting competition. They prohibit competition forever. What is the law of diminishing marginal returns?
Which of the following movements on a Production Possibilities Graph would represent economic growth for a nation? O A. an inward shift of the entire production possibilities curve B. an outward shift of the entire production possibilities curve O C. a movement from a point inside the curve to a point on the curve O D. a movement from a point on the curve to a point inside the curve b m
Jtilizing the aggregate production functions to the right, Robert Solow asserted that the most significant or critical factor in driving long term economic growth is and is reflected in the movement from to O A. capital accumulation; "B" to C" Production function3 D B. technological change; "A" to "B" Production function2 O C. economies of scale; "D" to "C" O D. technological change; "B" to "C Production function, :B O E. capital accumulation; "A" to "C" $40 Capital per hour worked (K/L) 60 Click to select your answer. la 19 Lhednge SSS-76 DOCX cBook Air F9 F10 F11 F12 F7 F8 + 8 9 del Real GDP per houraorked (Y/L)
In the endogenous growth model presented in the text, suppose that u represents the fraction of time spent working (as opposed to accumulating human capital) and b represents the efficiency of human cap. accumulation. The growth rate of consumption equals O A. (1-b)(1-u). O B. b(1-u?. OC. b(1-u) - 1. O D. 1+b(1 - u). O E. u(1-b) -1.
Economic growth may be described as? Select one: O a. An increase in money available to the economy O b. An increase in employment O. An increase in training in the economy Od. An increase in GDP over time
According to the text, European countries' growth rates of real GDP per capita Select one: O a. decreased in the first two decades after 1980 and then increased in the following two decades. O b. decreased during each of the four decades beginning 1980. O c. followed a random pattern during the four decades beginning 1980. O d. remained constant during each of the four decades beginning 1980.
If the capital stock equals 200 units in year 1 and the depreciation rate is 5 percent per year, then in year 2, assuming no new or replacement investment, the capital stock would equal_____ units. Select one: a. 195 b. 210 c. 190 d. 200
India's Economy Hits the Wall Just six months ago, India was looking good. Annual growth was 9%, consumer demand was huge, and foreign investment was growing. But now most economic forecasts expect growth to slow to 7%-a big drop for a country that needs to accelerate growth. India needs urgently to upgrade its infrastructure and education and healthcare facilities. Agriculture is unproductive and needs better technology. The legal system needs to be strengthened with more judges and courtrooms. Source: BusinessWeek, July 1, 2008 Explain potential sources for faster economic growth in India suggested in this news clip. Potential sources for faster economic growth in India include O A. increasing consumer demand because it increases real GDP O B. slowing the population growth rate because a slower population growth rate means that fewer consumption goods can be produced and more capital goods can be produced OC. announcing high economic growth forecasts because firms will produce the…