Exam 12: Production and Growth

Scenario 12-1. An economy's production form takes the form Y = AF(L, K, H, N). -Refer to Scenario 12-1. If the production function has the constant-returns-to-scale property, then if we know the values of A, K/L, H/L, and N/L, we also know the value of

After adjusting for inflation, over time the prices of most natural resources have been

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

If a country were to increase its saving rate, then in the long run it would also increase its

Gramp's Potato Chips produces 1280 bags of potato chips a day. Each employee at Gramp's works 8 hours. If the company's productivity is 20 bags per hour, how many people does Gramp's employ?

All else equal, by saving more, a country

Other things the same, when an economy increases its saving rate

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

Productivity can be computed as the number of hours worked divided by output.

Industrial machinery is an example of

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 130. The price of recycled aluminum increased by

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labor productivity.

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991. However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?

In a particular production process, if the quantities of all inputs used are increased by 60 percent, then the quantity of output increases by 60 percent as well. This means that

In one day Portal Computer Company made 400 laptops with 1200 hours of labor. What was its productivity?

Indonesians, for example, have a lower standard of living than Americans because they have a lower level of productivity.

In an economy where net exports are zero, if saving rises in some period, then in that period

Fretonia and Libstien are the same except Fretonia has a larger capital stock. Both countries undertake policies that raise their saving rates to the same higher level. We would expect that