Chapter 7: Q 17. (page 186)
What is an aggregate production function?
The aggregate production function describes how various accessible inputs such as labor, physical capital, human capital, and technology affect an economy's total output.
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Assume there are two countries: South Korea and the United States. South Korea grows at 4% and the United States grows at 1%. For the sake of simplicity, assume they both start from the same fictional income level, $10,000. What will the incomes of the United States and South Korea be in 20 years? By how many multiples will each country's income grow in 20 years?
Describe some of the political and social tradeoffs that might occur when a less developed country adopts a strategy to promote labor force participation and
economic growth via investment in girls’ education.
Use an example to explain why, after periods of rapid growth, a low-income country that has not caught up to a high-income country may feel poor.
Are there other ways in which we can measure productivity besides the amount produced per hour of work?
How is the concept of technology, as defined with the aggregate production function, different from our everyday use of the word?
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