quiz2answersummer2006 - Economics 302 4 Week Summer Session...

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Economics 302 Name _____________________________ 4 Week Summer Session 2006 Answers to Quiz 2 Student ID Number __________________ 6/5/06 The following quiz is worth a total of 12.5 points. In addition, 0 to 2.5 points will be added to your final score if your work is legible and easy to follow (1 points for marginally clear work, 2 points for clear work, and 2.5 points for exemplary clear and neat work). 1. Suppose that the production function for an economy is given by Y = A K 1/2 L 1/2 Where Y is output, A is the level of technology, K is capital and L is labor. a. (1 point) If the value of A is 10, and there are 100 units of K and 400 units of labor, what is the value of output equal to in this economy? Show your work. Y = A K 1/2 L 1/2 = 10(100) 1/2 (400) 1/2 = 10(10)(20) = 2000 b. (1 point) Given the values in part (a), what is output per worker? Y/L = 2000/400 = 5 units of output/ worker c. (1 point) Given the values in part (a), what is output per unit of capital? Y/K = 2000/100 = 20 units of output/capital
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This note was uploaded on 08/08/2008 for the course ECON 302 taught by Professor Gold during the Spring '07 term at University of Wisconsin Colleges Online.

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quiz2answersummer2006 - Economics 302 4 Week Summer Session...

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