Multiple Choice
Use the Cobb-Douglas production function to answer this question. Suppose that the capital-labor ratio and the efficiency of the labor force are each raised to the power 1/2. If capital-labor ratio grows at 4% per year and if the efficiency of the labor force grows at 2% per year, then output per worker
A) will grow at 6% per year.
B) will grow at 2% per year.
C) will grow at 3% per year.
D) will grow at 5% per year.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: Economists call the process of reducing the
Q12: Output per unit of labor (Y/L) will
Q13: Which of the following is one of
Q14: Each of the following is part of
Q15: If decision makers assume that the future
Q17: If the level of consumption spending increases
Q18: Each of the following is a fundamental
Q19: If the level of consumption spending decreases
Q20: K/L is<br>A) the capital per unit of
Q21: The fact that economics developed as an