ECON 560 Midterm: ECON560 Midterm 1 Fall 2013 solution
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Instructions: this is closed book, closed notes exam, no calculators of any kind are allowed, show all the calculations, if you need more space, use the back of the page, fully label all graphs. Suppose that apple company produces output according to production function workers. Over the last year, apple experienced a 3% increase in productivity, and a 0. 5% increase in the number of workers. , where a is productivity and l is the number of. The following table provides made up data on output per worker in two countries, which produce two goods only: cars and meals. Assume that cars are traded goods while meals are not traded. Josh and lisa are imf economists that study the cross country income disparity in the world. Using the market exchange rate, josh found that country a"s gdp per worker is 5 times that of country b.
