Please provide simple and thorough explanation to the below: Question 1: Suppose that a country's production is describe
Posted: Thu May 19, 2022 8:24 am
Please provide simple and thorough explanation to the
below:
Question 1: Suppose that a country's production
is described by the following production function:
Y=AK0.2L0.8
1.1 Calculate the country's GDP and GDP per
capita if A=10, K=40, and L=30. What will happen to the production
level if both K and L doubles. What is the economic interpretation
of your results?
1.2 Calculate Marginal Product of Labour (MPL)
and Marginal Product of Capital (MPK). State the relationship
between L and MPL. State the relationship between K and MPK.
Discuss the economic interpretation of your answer.
1.3 Calculate the country's GDP and GDP per
capita, MPL and MPK if A=10, K=30 and L=80. Discuss the economic
interpretation of your answer.
1.4 What can government do to raise
productivity and living standards?
1.5 If China has a growth rate of 7% per annum,
how long does it take to double its GDP.
below:
Question 1: Suppose that a country's production
is described by the following production function:
Y=AK0.2L0.8
1.1 Calculate the country's GDP and GDP per
capita if A=10, K=40, and L=30. What will happen to the production
level if both K and L doubles. What is the economic interpretation
of your results?
1.2 Calculate Marginal Product of Labour (MPL)
and Marginal Product of Capital (MPK). State the relationship
between L and MPL. State the relationship between K and MPK.
Discuss the economic interpretation of your answer.
1.3 Calculate the country's GDP and GDP per
capita, MPL and MPK if A=10, K=30 and L=80. Discuss the economic
interpretation of your answer.
1.4 What can government do to raise
productivity and living standards?
1.5 If China has a growth rate of 7% per annum,
how long does it take to double its GDP.