Reference no: EM13189872
Consider a Cobb-Douglas production function with three inputs. K is capital, L is labor and H is human capital (nº of college degrees among the workers). The production function is:
Y=K1/3L1/3H1/3
a) Derive an expression for the marginal product of labor. How does an increase in the amount of human capital affect the marginal product of labor?
b) Derive an expression for the marginal product of human capital. How does an increase in the amount of human capital affect the marginal product of human capital?
c) What is the income share paid to labor? What is the income share paid to human capital? In the national income accounts of this economy, what share of total income do you think workers would appear to receive?
d) An unskilled worker earns the marginal product of labor, whereas a skilled worker earns the marginal product of labor plus the marginal product of human capital. Using the answers to parts a) and b), find the ratio of the skilled wage to the unskilled wage. How does an increase in the amount of human capital affect this ratio? Explain
e) Some people advocate government funding of college scholarships as a way of creating a more egalitarian society. Others argue that scolarships help only those who are able to go to college. Do your answers to the preceding questions shed light on this debate?
|
Has there been an increase or a decrease in demand
: a firm faces a demand cure, p=80-3q, and has a cost equation c=200+20q Find the optimal quantity and price for the firm, now suppose that demand changes to p=1103Q. find the new optimal and quantity. has there been an increase or a decrease in dema..
|
|
What will be the new levels of real gdp in the right column
: Assuming no change in hours of work, if real output per hour of work increases by 10 percent, what will be the new levels of real GDP in the right column of A Does the new data reflect an increase in aggregate supply or does it indicate a decrease..
|
|
Characteristic of a realigning election
: All of the following are characteristic of a realigning election except
|
|
Consequence to earths ecosystems
: What would be the consequence to Earth's ecosystems if the ozone layer were to completely dissipate? Are certain organisms, landscapes, environments more at risk if this were to happen?
|
|
What is the income share paid to labor
: Some people advocate government funding of college scholarships as a way of creating a more egalitarian society. Others argue that scolarships help only those who are able to go to college. Do your answers to the preceding questions shed light on ..
|
|
Brain fails to develop at levels
: Is a rare condition in which the brain fails to develop at levels above the
|
|
Measurement-sampling or different category
: In Research Methods, would statistical regression threats be related to measurement, sampling, or a different category?
|
|
By what percentage would your real income increase
: If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent..
|
|
Where strategic planning comes as we deal with change
: Have you thought about where strategic planning comes as we deal with change? HR is right at the front door because of all the data collected. Which role will have more emphasis, administrative or strategic?
|