Assume the production function takes the general form (as in lecture notes) Y = z xF(K,L, A) Z X where all marginal products are positive. Which 3 of the following statements are correct? Select one...


Assume the production function takes the general form (as in lecture notes)<br>Y = z xF(K,L, A)<br>Z X<br>where all marginal products are positive.<br>Which 3 of the following statements are correct?<br>Select one or more:<br>O a. If A is fixed, then population growth acts as a drag on growth of output per person.<br>b. If A is fixed, then population growth acts as a drag on growth, and so Malthus was correct that population<br>growth will always reverse the impact of technological improvements.<br>Both rises in z and rises in K/L (capital intensity) will boost output per worker.<br>O d. Growth in output per worker can occur due to rises in z (technology) or rises in K/L (capital intensity), or<br>both.<br>

Extracted text: Assume the production function takes the general form (as in lecture notes) Y = z xF(K,L, A) Z X where all marginal products are positive. Which 3 of the following statements are correct? Select one or more: O a. If A is fixed, then population growth acts as a drag on growth of output per person. b. If A is fixed, then population growth acts as a drag on growth, and so Malthus was correct that population growth will always reverse the impact of technological improvements. Both rises in z and rises in K/L (capital intensity) will boost output per worker. O d. Growth in output per worker can occur due to rises in z (technology) or rises in K/L (capital intensity), or both.

Jun 08, 2022
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