Economics 302
Name _____________________________________
Spring 2007
Quiz #2
Section Number ______________________________
The following quiz is worth a total of 2.5 points.
If your work is illegible or sloppy points will be
subtracted (.25 for marginally sloppy work, .5 for sloppy work, and 1 for unbearably sloppy work).
1.
Suppose that the production function for an economy is given by
Y = F (K, L) = A K
½
L
½
Where Y is output, A is the level of technology, K is capital and L is labor.
a.
(.25 points) If the value of A is 100, output is 5000 units, and there are 100
units of labor, what is the number of units of capital equal to in this
economy? Show your work.
b.
(.25 points) Given the values given in part (a), what is output per unit of
capital?
c.
(.25 points) Write an expression for the marginal product of capital for
this production function. Do not calculate a numerical value for this, but
provide a general equation for MPK.
d.
(.25 points) If there is a technological improvement in this economy and
A increases to 200 while labor and capital are unchanged, what will the
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 Spring '07
 GOLD
 Economics, Macroeconomics, sloppy work

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