Exam 7: The Standard of Living Over Time and Across Countries

The marginal product of capital is the ________ curve for capital and the marginal product of labour is the ________ curve for labour.

Suppose that the production function for the economy is: Y = AK¹/⁴ᴸ³/⁴.Assume that real GDP is $8000 billion,capital stock is $32 000 billion,and the labour supply is 120 million (or 0.120 billion)workers.The value of the marginal product of labour is ________ per worker.

Which of the following would be the least likely to increase total factor productivity?

Suppose that the production function for the economy is Y = AK¹/⁴ᴸ³/⁴.Assume that real GDP is $8000 billion,capital stock is $32 000 billion,and the labour supply is 120 million (or 0.120 billion)workers.Total factor productivity for this economy is

Explain the relationships between the marginal product of labour and the demand for labour,and the marginal product of capital and the demand for capital.

All else equal,as the labour supply increases,the marginal product of labour will

Which of the following is not a distinguishing characteristic of the Cobb-Douglas production function?

Assuming that total factor productivity is constant,describe the effect of an increase in the capital-labour ratio on the per worker production function.What happens to the marginal product of labour,the marginal product of capital,and real GDP per capita?

A firm that wishes to maximize profits will continue to hire labour until the

Two of the most important factors that influence total factor productivity are

Which of the following equations best represents the concept of constant returns to scale?

Of the determinants of real GDP per capita,the more important one is

Suppose y = Ak¹/³,the capital-labour ratio is $30 000 per worker,the level of total factor productivity is 400,50% of the population works,and there are 50 million workers.Real GDP per capita is

The processes a firm uses to turn inputs into outputs of goods and services are the firm's

The Cobb-Douglas production function represents real GDP as a function of all of the following variables except

Suppose that the production function for the economy is Y = AK⁰.²ᴸ⁰.⁸.If the capital stock = 40 000,the quantity of labour = 10 000,and the efficiency index = 1,real GDP is

Which of the following would be the least likely to increase total factor productivity?

All else equal,continued increases in the labour supply in an economy will lead to

Suppose that the production function is Y = AK?.³???.??,the number of workers equals 800,the capital stock is $150 000,and real GDP is $750 000.What is the value of total factor productivity?

An increase in foreign investment in Brazil's mining industry will increase the capital stock in Brazil.All else equal,as the capital stock increases,the marginal product of capital (MPK)will