Increase in capital per worker does increase real wages. The higher the productivity, the higher the standards of living.
Because more capital is available for investment, leading to higher output through capital deepening
The reason higher saving leads to higher GDP in the future is because additional capital becomes available for investment, which results in higher output via capital deepening. GDP stands for gross domestic product.
Diminishing marginal product of capital is an economic principle that refers to the concept that when the input is increased and the other inputs are kept at the same level than it may initially increase output. However, if the inputs continue to increase with no other changes there may be limited effect or eventually negative effect on the output.
It is the idea that the economic growth is dependent on capital-output ratio (k, calculated as: Total output produced/total capital invested i.e. efficiency) and the saving ratio of the population. The assumptions it makes are: - Output is a function of capital stock - The marginal product of capital is constant. - Capital is necessary for output - The product of the savings rate and output equals saving which equals investment - The change in the capital stock equals investment minus the depreciation of the capital stock It states that Rate of growth of GDP = Savings ratio/ Capital output ratio.
what are the imports in indusrty to increase output and perphaps exports
Because more capital is available for investment, leading to higher output through capital deepening
The reason higher saving leads to higher GDP in the future is because additional capital becomes available for investment, which results in higher output via capital deepening. GDP stands for gross domestic product.
Diminishing marginal product of capital is an economic principle that refers to the concept that when the input is increased and the other inputs are kept at the same level than it may initially increase output. However, if the inputs continue to increase with no other changes there may be limited effect or eventually negative effect on the output.
Depending on the marginal output of the workers at that level of output, an additional two could increase output my more than 8, exactly eight, or less than 8 units.
The formula for the average product of labor (or capital) is simply output, Q, divided by the number of workers (or units of capital), L (K). Simply, APL = Q/L APK = Q/K
the only way to increase the work output is to increase the amount of work you put into the machine.
It is the idea that the economic growth is dependent on capital-output ratio (k, calculated as: Total output produced/total capital invested i.e. efficiency) and the saving ratio of the population. The assumptions it makes are: - Output is a function of capital stock - The marginal product of capital is constant. - Capital is necessary for output - The product of the savings rate and output equals saving which equals investment - The change in the capital stock equals investment minus the depreciation of the capital stock It states that Rate of growth of GDP = Savings ratio/ Capital output ratio.
what are the imports in indusrty to increase output and perphaps exports
The ratio of capital used to produce an output over a period of time. This ratio has a tendency to be high when capital is cheap as compared to other inputs. For instance, a country with abundant natural resources can use its resources in lieu of capital to boost its output, hence the resulting capital output ratio is low. Read more: http://www.investorwords.com/15287/capital_output_ratio.html#ixzz25NCB393U
By the equilibrium between supply and demand for workers
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Achieve large and lasting increase output the economy must achieve increase capcity utilization