ECONOMICS 1120112 - 103 ,$8millionto$12 $5millionto$6million. , per-workerprod

ECONOMICS 1120112 - 103 ,$8millionto$12...

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103) In a small Asian country, it is estimated that changing the level of capital from $8 million to $12million will increase real GDP from $5 million to $6 million. If the number of hours worked inthe labor force doesnotchange, what does this information tell you about the slope of theper-worker production function in this range?A) The slope is-4.B) The slope is 1/4.C) The slope is 4.D) The slope is 8.Answer: B103)Page Ref: 739-740/357-358Learning Outcome: Macro-4: Explain the sources of productivity growth.104) In a small Asian country, it is estimated that changing the level of capital from $8 million to $12million will increase real GDP from $4 million to $6 million. What level of GDP would youexpect the economy to be able to reach if spending on capital continued to rise to $16 million,assuming no technological change and no change in the hours of work?104)Page Ref: 739-740/357-358Learning Outcome: Macro-4: Explain the sources of productivity growth.105) If the slope of the per-worker production function is 1/4 in a given range, how will a $10,000increase in capital per hour worked affect real GDP per hour worked in the same given range?105)Page Ref: 739-740/357-358Learning Outcome: Macro-4: Explain the sources of productivity growth.23
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