Exam 3: Aggregate Production and Productivity

Assume that an economy is in equilibrium when the arrival of immigrants causes an increase in the supply of labor.Once the economy has adjusted to its new equilibrium,and assuming that the supply of capital remains unchanged,which of the following has decreased?

The marginal product of capital (MPK)can be calculated from the following ________.

In an environment characterized by perfect competition,we expect that ________.

Constant returns to scale (CRS)implies that ________.

Suppose than an economy has output Y = A ,that Y equals $19 trillion,capital K is $27 trillion,and labor L is 125 million workers.Given this information,what is the closest approximation of total factor productivity A?

Profit maximization implies that firms will want to ________.

Key influences on the valuation of economic profits include ________.

Diminishing marginal product means that ________.

Which of the following is (are)likely to cause the marginal product of an input to decrease?

In an economy with production function Y = 1.5 × ,K = 343,and L = 512.If factor markets are in equilibrium,then the rental price of capital is (approximately)________,and the real wage is (approximately)________.

An economy's production function is Y = A ,and the economy's total output in equilibrium is $800 billion.Total capital income in this economy is ________.

Constant returns to scale (CRS)implies that when the firm ________.

Suppose than an economy has output Y = A ,that Y equals $12 trillion,capital K is $27 trillion,and labor L is 64 million workers.Given this information,what is the closest approximation of total factor productivity A?

Which of the following is true about total factor productivity (TFP)?

The marginal product of capital (MPK)measures ________.

The three oil shocks the U.S.experienced in 1973-1974,1979-1980 and 2007-2008 had which of the following consistent results?

An economy's production function is Y = A ,and the economy's total output in equilibrium is $700 billion.Total labor income in this economy is ________.

Which of the following is true about total factor productivity (TFP)?

Given the production function Y = A ,if an economy's capital per worker k is $27 thousand,and its total factor productivity A is 0.5,then output per worker is (approximately)________.

The main cause of low per capita income is ________.