Does londonland confomr to the one third rule

Reference no: EM13199576

For 3 years there was no technological change in Londonland but capital per hour of labor increased from $10 to $20 to $30 and real GDP per hour of labor increased from $3.80 to $5.70 to $7.13. Then, in the 4th year, capital per hour of labor remained constant but real GDP per hour of labor increased to $10.
A. Does Londonland experience diminishing returns? why or why not
B. Does Londonland confomr to the one third rule? why or why not and if not, explain what rule it does conform to.
C. Explain how you would do the growth accounting for Londonland and calculate the effect of technological change on the growth in the 4th year- as described above.

Reference no: EM13199576

Questions Cloud

Describe foreign purchase to protect american manufacturing : Globalization is becoming very important in economic discussions. Describe a recent foreign purchase and whether it is better to source from overseas or should tariffs be in place to protect American manufacturing.

How to eliminate the deficit but raising taxes : (1) eliminate the deficit by cutting government spending and (2) eliminate the deficit but raising taxes. Which program has the least damaging effect on GDP. Just tell me how much GDP falls in each program and draw the correct conclusion.

What is opportunity cost of reading 100 pages of sociology : Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying. a.) Draw Maria's production possibilities frontier for reading economics and sociology.

What might this mean in terms of future growth in the us : A hot topic in today's news is the rising cost of health care and how we, as a country can provide universal health coverage. Approximately 47 million individuals in the U.S. are uninsured or underinsured.

Does londonland confomr to the one third rule : For 3 years there was no technological change in Londonland but capital per hour of labor increased from $10 to $20 to $30 and real GDP per hour of labor increased from $3.80 to $5.70 to $7.13. Then, in the 4th year, capital per hour of labor rema..

How does the unemployment rate in may compare : A spike in the unemployment rate-the biggest in more than 2 decades-raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing & credit markets are leading the US economy in to a painful recession.

Define entrants and reentrants into the labor force : In March 2007, the US unemployment rate was 4.4 percent. In August 2008 the unemployment rate was 6.1 percent. Use this information to predict what happened between March 2007 and August 2008 to the numbers of A. Job losers to and job leavers

How much will jane have in her retirement account : How much will Jane have in her retirement account immediately after she makes her last contribution in Year 40, assuming a return on her investments of 9%?

What is the level of production and price : A firm faces the following average revenue (demand) curve: P = 120 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 25,000.

User Account

All Pages