Question

In a small Asian country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600. Based on this information, what is the slope of the per-worker production function in this range?

Answer 1

Answer:

slope of the per-worker production function = 0.06

Explanation:

given data

increase in capital per hour = $10,000

increase real GDP per hour = $600

solution

we get here slope of the per-worker production function that is express as here

slope of the per-worker production function = increase real GDP per hour ÷ increase in capital per hour    ..............1

put here value

slope of the per-worker production function = $\frac{600}{10000}$

slope of the per-worker production function = 0.06