Please answer the following questions: (Give a detailed explanation.)

1.

Which of the following production functions do not exhibit constant returns to scale? A. F(K, L) = AKaLl-a F(K, L) = AK + BL - FULL) = ?}$ . F(K,L) = K(1 _ e(L/K)) recaps . None of the above In 2014, the per capita GDP of the five richest countries was 70 times higher than that of the five poorest, i.e. yrich = 70. If y = Akl/3 and ( Krich ) 1/3 ypoor kpoor = 5, then the ratio of TFPs across countries, Apoor Arich to explain income differences is A. 1 B. 5 C. 14 D. 48 E. 77In the Production model, an increase in the capital stock, K; A. Raises; Reduces . Does not affect; Raises the wage and employment. . Raises; Raises . Reduces; Reduces WOODS! . Raises; Does not affect