Exam 4: A Model of Production

The marginal product of labor is defined as:

Figure 4.6: Production Function -Consider the two production functions in Figure 4.6, representing two countries. Which of the following is true? i. At points a and b, each country has the same per capita capital stock but different factor productivity. ii. Points a and c represent the same country but with different factor productivity. iii. Points b and d represent the same country but with different stock of per capita capital.

A production function exhibits increasing returns to scale if:

Refer to the following figure when answering Figure 4.2: The Production Function -Consider Figure 4.2. The shape of this production function suggests:

The production function $Y = \bar { A } \bar { K } ^ { 1 / 3 } \bar { L } ^ { 2 / 3 }$ describes:

Both the United States and France, among the richest countries in the world, have similar levels of education and capital per worker, but the U.S. citizens enjoy higher incomes than the French. One explanation might be differences in:

In the year 2007, total factor productivity was about ________ times ________ important than capital per person when determining differences in per capita GDP using the production model.

If you have data on per capita GDP and capital per worker, to find total factor productivity you can use the equation $\bar { A } = y / k ^ { 1 / 3 }$ , if capital's share of GDP is two-thirds.