Question 1

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N).
-Refer to Scenario 25-1.In the production function,which of the following represents technology?

Accepted Answer

In the production function Y = AF(L,K,H,N), A represents technology as it is a measure of total factor productivity which captures the technological advancements and efficiency in utilizing the factors of production L, K, H, and N.

Question 2

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N).
-Refer to Scenario 25-1.If the production function has the constant-returns-to-scale property,then it is possible that the specific form of the production function is

Accepted Answer

The answer of Scenario 25-1.An economy's production form takes the...

Question 3

If the number of workers in an economy doubled,all other inputs stayed the same,and there were constant returns to scale,productivity would

Accepted Answer

If the number of workers in an economy doubled and all other inputs stayed the same, the productivity would fall, but it would still be greater than one-half of its former value. This is because the constant returns to scale mean that doubling the number of workers would not double the output, but it would increase it by less than double. Therefore, productivity would decrease but still be greater than one-half of its former value.

Question 4

In the production function Y= A F(L,K,H,N),which symbol reflects the state of technology?

Accepted Answer

Symbol A in the production function reflects the state of technology, as it represents the level of productivity that can be achieved with a given combination of inputs. A higher value of A indicates more advanced technology, while a lower value indicates less advanced technology. Therefore, A is the best choice reflecting the state of technology.

Question 5

You bake cookies.One day you double the time you spend,double the number of chocolate chips,flour,eggs,and all your other inputs,and bake twice as many cookies.Your cookie production function has

Accepted Answer

Doubling all inputs and getting exactly twice the output indicates constant returns to scale.

Question 6

If a production function has constant returns to scale,output can be doubled if

Accepted Answer

If the production function exhibits constant returns to scale, then doubling all inputs will result in a doubling of output because the level of productivity remains the same. This is unlike option A, where output would only increase by a factor of 2 if labor alone doubles. Option B would also not work because if all inputs except labor-double, the level of productivity would not remain constant, and hence output would not necessarily increase by a factor of 2.

Question 7

Which of the following statements is correct?

Accepted Answer

Human capital, which includes the knowledge, skills, and education of workers, is a determinant of productivity as it affects the efficiency and effectiveness of work. Abundant natural resources may not necessarily lead to high productivity as it also depends on how well those resources are managed and utilized. Human capital and technological knowledge are not the same thing, although there may be some overlap as technological knowledge can be a component of human capital. Not all technological knowledge is proprietary as some knowledge can be public domain or shared among industries.

Question 8

If there are constant returns to scale,the production function can be written as

Accepted Answer

Constant returns to scale imply that if all inputs are increased by a certain factor, output increases by the same factor. The expression Y/L = A F(1, K/L, H/L, N/L) reflects this by showing output per worker as a function of capital, human capital, and natural resources per worker, which is consistent with constant returns to scale.

Question 9

The production function for Country A exhibits constant returns to scale.Suppose that physical capital per worker,human capital per worker,and natural resources per worker all triple.At the same time,Country A's technological knowledge doubles.Productivity

Accepted Answer

With constant returns to scale, tripling inputs (physical, human, and natural resources per worker) and doubling technological knowledge results in a sixfold increase in productivity (3 times 2).

Question 10

Suppose there are constant returns to scale.Now suppose that over time a country doubles its workers,its natural resources,its physical capital,and its human capital,but its technology is unchanged.Which of the following would double?

Accepted Answer

Since the technology is unchanged, there are no improvements in efficiency or knowledge that could increase productivity, which means there are no increases in productivity. However, output will double because there are double the workers and the physical capital which all lead to higher production levels.

Question 11

An economy's production function has the constant-returns-to-scale property.If the economy's labor force doubled and all other inputs stayed the same,then real GDP would

Accepted Answer

The answer of An economy's production function has the constant-returns-to-scale...

Question 12

You sell cupcakes.One day you double the time you spend and double all your inputs,and make twice as many cupcakes.Your cupcake production function has

Accepted Answer

When you double all inputs and the output also doubles, it indicates constant returns to scale.

Question 13

A certain production process requires only two types of inputs - capital and labor.In 2006,100 units of labor and 50 units of capital were employed,and 100 units of output were produced.In 2013,112 units of labor and 56 units of capital were employed.If the production process displays constant returns to scale,then how many units of output were produced in 2013?

Accepted Answer

Since the production process displays constant returns to scale, we can assume that the proportional increase in inputs is equal to the proportional increase in output. 
In 2006, the ratio of labor to capital was 100:50 = 2:1. 
Therefore, the production function can be written as Q = f(L,K) = f(2L,K/K)
Similarly, in 2013, the ratio of labor to capital was 112:56 = 2:1. 
Therefore, the amount of output produced in 2013 can be found by: 
Q = f(2(112), 56/50 * 50) = f(224,56) = f(2(100),50) = 2Q 
Thus, the amount of output produced in 2013 is 2 times the amount produced in 2006, which is 100 units. Therefore, the answer is B) 112.

Question 14

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N).
-Refer to Scenario 25-1.K represents the quantity of

Accepted Answer

K represents physical capital, while L represents labor input, H represents human capital, and N represents nonrenewable natural resources. Therefore, K represents the quantity of physical capital only.

Question 15

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N).
-Refer to Scenario 25-1.If the production function has the constant-returns-to-scale property,then if we know the values of A,K/L,H/L,and N/L,we also know the value of

Accepted Answer

If the production function has constant returns to scale, then output per worker (labor productivity) depends only on A, K/L, H/L, and N/L.

Question 16

Which of the following statements is correct?

Accepted Answer

All the statements are correct: Productivity growth is crucial for improving living standards, both common and proprietary technologies are vital for production, and "capital" often refers to physical capital in economic contexts.

Question 17

If an economy with constant returns to scale were to double its physical capital stock,its available natural resources,and its human capital,but leave the size of the labor force the same,

Accepted Answer

Constant returns to scale implies that an increase in inputs by a certain percentage results in a proportionate increase in outputs. Hence, if all inputs are doubled, the output would also double. However, since the labor force is unchanged, the economy might experience diminishing returns to each factor of production as they become more scarce relative to the labor force. Therefore, the increase in output and productivity would be less than double but still increase.

Question 18

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N).
-Refer to Scenario 25-1.If the production function has the constant-returns-to-scale property,then it can be rewritten as

Accepted Answer

When the production function has the constant-returns-to-scale property, it means that if all input factors are increased by the same proportion, output will increase by the same proportion. In other words, Y/L, which is output per unit of labor input, should remain constant. Therefore, we can rewrite the production function in terms of Y/L and the other input factors normalized by L. This yields choice A as the best option.

Question 19

Greg learns how to bake from his grandmother.This is an example of

Accepted Answer

Learning a skill like baking from his grandmother increases Greg's human capital, as it enhances his personal skills and abilities, but it does not involve technological knowledge, which refers to the understanding of how to produce goods and services.

Quiz 12: Production and Growth: Productivity Its Role and Determinants

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N) . -Refer to Scenario 25-1.In the production function,which of the following represents technology?

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N) . -Refer to Scenario 25-1.If the production function has the constant-returns-to-scale property,then it is possible that the specific form of the production function is

If the number of workers in an economy doubled,all other inputs stayed the same,and there were constant returns to scale,productivity would

In the production function Y= A F(L,K,H,N) ,which symbol reflects the state of technology?

You bake cookies.One day you double the time you spend,double the number of chocolate chips,flour,eggs,and all your other inputs,and bake twice as many cookies.Your cookie production function has

If a production function has constant returns to scale,output can be doubled if

Which of the following statements is correct?

If there are constant returns to scale,the production function can be written as

The production function for Country A exhibits constant returns to scale.Suppose that physical capital per worker,human capital per worker,and natural resources per worker all triple.At the same time,Country A's technological knowledge doubles.Productivity

Suppose there are constant returns to scale.Now suppose that over time a country doubles its workers,its natural resources,its physical capital,and its human capital,but its technology is unchanged.Which of the following would double?

An economy's production function has the constant-returns-to-scale property.If the economy's labor force doubled and all other inputs stayed the same,then real GDP would

You sell cupcakes.One day you double the time you spend and double all your inputs,and make twice as many cupcakes.Your cupcake production function has

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N) . -Refer to Scenario 25-1.K represents the quantity of

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N) . -Refer to Scenario 25-1.If the production function has the constant-returns-to-scale property,then if we know the values of A,K/L,H/L,and N/L,we also know the value of

Which of the following statements is correct?

If an economy with constant returns to scale were to double its physical capital stock,its available natural resources,and its human capital,but leave the size of the labor force the same,

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N) . -Refer to Scenario 25-1.If the production function has the constant-returns-to-scale property,then it can be rewritten as

Greg learns how to bake from his grandmother.This is an example of