Given the Production Function Y = AF(K,N) and Assuming Constant

question 40

Multiple Choice

Given the production function Y = AF(K,N) and assuming constant returns to scale, the contribution of capital to output growth can be estimated by

• A)adding the growth rate of capital to the term A
• B)multiplying the growth rate of capital by capital's share in production
• C)subtracting the growth rate of labor from the rate of technological advancement
• D)multiplying the capital-labor ratio by the level of output
• E)multiplying total factor productivity with capital's share in production

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Definitions:

Simplify

To reduce a mathematical expression to its simplest form by performing operations and combining like terms.

Evaluate

The process of calculating the value of an expression.

Simplify

To simplify an expression means to reduce it to its simplest form, by performing all possible operations and combining like terms.

Evaluate

To calculate the value of an expression by substituting variables with given numerical values and performing the operations in the expression.