Question

Which of the following are inputs for the aggregate production function with GDP per capita as its output? Select the two correct answers below. Select all that apply: o technology workforce O human capital per person M physical capital per person

Answer 1

The inputs for the aggregate production function with GDP per capita as its output are human capital per person and physical capital per person.

Step-by-step explanation:

Gross Domestic Product (GDP) per capita is a key economic indicator that assesses a country's economic output per person. It is calculated by dividing a nation's GDP by its population. This metric provides insights into the average economic well-being of individuals within a country, helping compare living standards across nations. High GDP per capita generally indicates a higher standard of living, though it doesn't account for income distribution.

It's a widely used measure in economic analysis and international comparisons. The inputs for the aggregate production function with GDP per capita as its output are human capital per person and physical capital per person. These inputs represent the average level of human capital and physical capital per individual in the economy.

Answer 2

The inputs for the aggregate production function with GDP per capita as output are the average levels of human capital per person and physical capital per person, as well as the level of technology.

Step-by-step explanation:

The inputs for the aggregate production function with GDP per capita as its output are the average level of human capital per person, the average level of physical capital per person, and the level of technology. Since we are discussing GDP per capita, the labor input is assumed to be incorporated into these other factors and does not need to be listed separately. It is important to note that an increase in population, while affecting per capita income, is only beneficial if the rate of income growth exceeds population growth. Understanding the contributions of human and physical capital is a key advantage of constructing a per capita production function.