Consider the following graph of the aggregate production function Real GDP per worker (constant dollars) $120,000 90,000
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider the following graph of the aggregate production function
Transcribed Image Text:
Real GDP per worker (constant dollars) $120,000 90,000 60,000 30,000 کے B Productivity using 2010 technology Productivity using 1940 technology 0 10 20 30 40 50 60 70 80 90 100 Physical capital per worker (2000 dollars) 2.1 Assume the economy is at point A. Identify the point on the graph that represents what happens when the economy gains more physical capital. 2.3 What does diminishing returns to physical capital mean? 2.2 Now the economy is at the point identified in part (1). Identify the point that represents what happens when the level of technology within the economy increases. Real GDP per worker (constant dollars) $120,000 90,000 60,000 30,000 کے B Productivity using 2010 technology Productivity using 1940 technology 0 10 20 30 40 50 60 70 80 90 100 Physical capital per worker (2000 dollars) 2.1 Assume the economy is at point A. Identify the point on the graph that represents what happens when the economy gains more physical capital. 2.3 What does diminishing returns to physical capital mean? 2.2 Now the economy is at the point identified in part (1). Identify the point that represents what happens when the level of technology within the economy increases.
Expert Answer:
Answer rating: 100% (QA)
1 What is the economy at point A B C D E F G H I and J The points on the graph represent different levels of productivity for a given level of physica... View the full answer
Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
Posted Date:
Students also viewed these economics questions
-
The country of Androde is currently using Method 1 for its production function. By chance, scientists stumble onto a technological breakthrough that will enhance Androdes productivity. This...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Why is it helpful to understand leadership as a theory while managing a healthcare-orientated organization? Justify your stance using two examples. What factors do you think should appear in a model...
-
The following items are to be reported on a balance sheet. 1. Accrued vacation pay 2. Income tax instalments paid in excess of the income tax liability on the year's income 3. Service warranties on...
-
Select three places and design your road trip. Map out each of the three places from Los ngeles to your destination. What type of transportation will you utilize? Who would travel with you, or is...
-
Sherman Lawn Service, Inc., began operations and completed the following transactions during August: Aug 1 Received \($1,000\) and issued 100 shares of common stock. Deposited this amount in bank...
-
Consider the Emarpy Appliance situation in Problem 6-54. If Richard Feehan wants to minimize the total annual inventory cost, how many refrigerators should be produced in each production run? How...
-
Cost of Sales is P300,000 Net Profit is P20,000 Each share is Pl Calculate: a. Gross profit margin b. Net profit margin c. Net working capital ratio d. Earnings per share (3 marks) (4 marks) (3...
-
s.pdf w19as3sol.doc.pdf 49f233c38bee8583... Create account Login Balance Sheet for a Simplified Bank Assets Cash Gov. Securities $ 100,000.00 190,476.19 Fixed Rate Mortgage Loans 600,000.00 Fixed...
-
A store buys bags for AED 200 each and sells them for AED 400 each. The store's fixed costs are AED 10,000 and the capacity for the period is 200. a) The break-even point is b) The break-even point...
-
A car is speeding up with constant acceleration. If the car speeds up from 10 m/s to 34 m/s in 5 seconds, how much longer will it take the car to reach a speed of 53 m/s? Explain your reasoning. Do...
-
3. A projectile is fired from point 0 at the edge of a cliff, with initial velocity components of v0x= 60 m/s and voy = 175 m/s, as shown in the figure. The projectile rises and then falls into the...
-
A Gaussian beam with a minimum spot size of 20 m is focused by a thin lens with a focal length of 5 mm that is placed 10 mm from the beam waist. Calculate the location and size of the new beam waist....
-
A fully loaded diesel engine operating at sea level runs at 2000 rpm and develops 1000 bhp (750 kW). The initial operating temperature of the engine is 518.7R (288.15K). Metered fuel injection is...
-
A customer relationship model attempts to enhance the relationship between the organization and the customer. The goal is to improve customer loyalty while identifying any potential opportunities. In...
-
Dime-Rent-A-Car, an auto rental company, has 2 agents staffing their rental operation at their SEA-TAC airport counter. Approximately, 30% of the arrivals hold Dime-Rent-A-Car Express membership...
-
In a paragraph of approximately 150-200 words, analyze a film or TV/Streaming Show poster of your choosing by focusing on the ways in which representations in the poster are gendered. Include an...
-
Assume Saudi Arabia and Canada face the production possibilities for oil and cars shown in the accompanying table. a. What is the opportunity cost of producing a car in Saudi Arabia? In Canada? What...
-
Suppose that in Wageland all workers sign annual wage contracts each year on January 1. No matter what happens to prices of final goods and services during the year, all workers earn the wage...
-
In the following examples, would the classical model of the price level be relevant? a. There is a great deal of unemployment in the economy and no history of inflation. b. The economy has just...
-
The shaft is supported by a smooth thrust bearing at A and a smooth journal bearing at B. If the shaft is made from steel having an allowable normal stress of \(\sigma_{\text {allow }}=150...
-
Draw the shear and moment diagrams for the shaft, and determine its required diameter to the nearest \(\frac{1}{8}\) in. if \(\sigma_{\text {allow }}=30 \mathrm{ksi}\) and \(\tau_{\text {allow }}=15...
-
Determine the minimum depth \(h\) of the beam to the nearest \(\frac{1}{8}\) in. that will safely support the loading shown. The allowable bending stress is \(\sigma_{\text {allow }}=2.1...
Study smarter with the SolutionInn App