question archive Consider the following aggregate production function: ???? = 100 × √???? × √????, where A is the total factor productivity, K is the amount of capital in the economy, L is the labour force, and Y is the GDP
Consider the following aggregate production function: ???? = 100 × √???? × √????, where A is the total factor productivity, K is the amount of capital in the economy, L is the labour force, and Y is the GDP
Subject:BusinessPrice: Bought3
Consider the following aggregate production function: ???? = 100 × √???? × √????, where A is the total factor productivity, K is the amount of capital in the economy, L is the labour force, and Y is the GDP.
a. Is this aggregate production function exhibiting the constant returns to scale? Explain how you know. (2)
b. Is this aggregate production function exhibiting the diminishing marginal product of capital? Explain how you know. (2)
2. In 1867, the government employed 6% of the country's workers. Since then, the country's labour force has been growing an average 0.5% a year while the government's employment has been growing an average 1% a year. What is the share of the government employment in the country's labour force by 2011? Explain how you know. (2)
3. Investopedia.com explains that "Bitcoin is a digital or virtual currency created in 2009." Is Bitcoin money? Explain. (2)
