Consider the Cobb-Douglas Production Function

question 8

Essay

Consider the Cobb-Douglas production function
.
(a)Write this in growth-rate terms.
(b)Next,define this in terms of per capita growth and identify the contributions of the components of per capita growth.
(c)If the growth rate of capital per worker is 1.3 percent;the labor composition growth rate is 0.4 percent,TFP growth is 1.2 percent;and a = 1/2,what is the growth rate of output per worker? If a = 1/3?

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Definitions:

Prosopagnosia

A brain disorder marked by the incapacity to identify facial features, commonly referred to as face blindness.

Perception

The process by which sensory information is organized, interpreted, and consciously experienced, forming a basis for understanding the environment.

Sensation

How our sensory receptors and nervous system take in and illustrate stimuli energies from the surroundings.

Clairvoyance

The claimed ability to gain information about an object, person, location, or physical event through extrasensory perception, beyond the five senses.