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econ ex1a

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2 views2 pages

econ ex1a

Uploaded by

lian74274
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1a w = 12 K 0.4 L−0.

2a Most developed economies experienced rapid technological progress in the past several decades.
Suppose technological progress mainly happens in secondary industries, but not in primary
industries. Assume that both primary and secondary sectors employ workers with similar
qualifications. How would technological progress affect the real wage of secondary workers and real
wage of primary workers?

primary drops, decreases factor of productivity in pdtion func, decrease in real wage

secondary rises, increases factor of productivity in pdtion func, increase in real wage

both rises

5a increase in net export of services by tourism from natural scenery

B L and K reduce, output n thus gdp reduces

C gdp is uncertain, depending on the degree of change by SR expenditure n LR production capcity


2b tech progress increases factor of productivity in pdtion func, overall employment n output rise

3 real wage rises n rental drops

4a 400

B 7.41

C imported workers

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