Exam 4: A Model of Production

If MPK = r, the firm:

Consider two countries, labeled 1 and 2. Each has the production function , = 1, 2. If the only difference between the two countries is that A₁ $\gt$ A₂:

The marginal product of the labor curve represents the labor supply curve.

In the year 2014 the five richest countries had a per capita GDP ________ times higher than the five poorest countries. Differences in capital per worker explain about ________ percent of this difference, with total factor productivity making up about ________ percent of this difference.

One of the key characteristics of the Cobb-Douglas production function is:

The equation MPK = r* yields the:

A firm's stock price is equal to:

Figure 4.5: Production Function -Consider the three production functions in Figure 4.5. Each represents a different country. For any given per capita stock of physical capital, which country has the highest total factor productivity?

Suppose the total factor productivity in Switzerland, Italy, South Africa, and India is 0.89, 0.70, 0.33, and 0.21, respectively. If the U.S. total factor productivity is 1.00, then the United States is ________ productive, respectively, than these four countries.

In the Cobb-Douglas production function , defining y = Y/L as output per person and K=K/L as capital per person, the per person production function is:

Refer to the following figure when answering the following questions. Figure 4.1: Production Function -Consider Figure 4.1. The shape of this production function suggests that $\alpha$ in the production function is:

The two main inputs we consider in a simple production function are:

If the U.S. total factor productivity is 1.00 and China's is 0.33, then the U.S. capital per worker is 67 percentage points more productive than China's.

If the production function is given by and K = 27 and L = 8, total output equals:

In the Cobb-Douglas production function , if a = 1/3, then:

The production function describes:

The production function describes how ________ can be combined to generate output.

The marginal product of labor is defined as:

Which of the following production functions exhibits constant returns to scale?

In the equation , the "bar" over the A means that it is a: