Consider the “Cobb-Douglas” production function given by  𝑌=𝐴𝐾𝛼𝐿1−𝛼where   𝐴>0 and 0<𝛼<1 . Let 𝑦=𝑌𝐿   denote output per worker (i.e., the average product of labour) and let 𝑘=𝐾𝐿 denote capital per worker. Which of the following is FALSE?Group of answer choicesThe average product of labour is greater than the marginal product of labourThe average product of labour is higher the higher capital per worker isThe marginal product of labour is lower the higher capital per worker isNone of the other options

Consider the “Cobb-Douglas” production function given by 𝑌=𝐴𝐾𝛼𝐿1−𝛼 where 𝐴>0 and 0<𝛼<1. Which of the following is FALSE?Group of answer choicesThe marginal product of capital is positiveThe marginal product of labour is positiveThere is diminishing returns to capitalThere is decreasing returns to scale

Consider the “Cobb-Douglas” production function given by 𝑌=𝐴𝐾13𝐿23 where A is a positive constant. Suppose that the capital stock grows at 2% per year and the labour force grows at 1% per year. According to the production function, what will output growth be approximately?Group of answer choices1% per year2% per year3% per year4% per year

Consider an economy with the production function  with A=10, K=100, and N=400, Suppose labour participation rates decline as a greater proportion of the population attends University full time before entering the job market so that N declines to N=380. In this case, Group of answer choicesBoth the Marginal Product of Labour and the Marginal Product of Capital increase.Both the Marginal Product of Labour and the Marginal Product of Capital decrease.The Marginal Product of Labour increases while the Marginal Product of Capital decreases.The Marginal Product of Labour declines while the Marginal Product of Capital increases.

Consider the aggregate production function Y = 3K0.6N0.3, which of the following observations is incorrect?Group of answer choicesThe production function exhibits decreasing return to capital.The production function exhibits constant returns to scale.The production function exhibits decreasing return to labour.All other observations are correct.

Assuming a Cobb-Douglas production function with constant returns to scale, then, as L rises with K and A constant, it will be the case that:Group of answer choicesThe marginal product of labour will rise and the marginal product of capital will fallBoth the marginal product of labour and the marginal product of capital will fallBoth the marginal product of labour and the marginal product of capital will riseThe marginal product of labour will fall and the marginal product of capital will rise