Economists Use the Notation Q = F(L,K) to Describe

question 42

Multiple Choice

Economists use the notation Q = f(L,K) to describe

• A) the technological relationship between the inputs that a firm uses and the outputs that it produces.
• B) the flow of labour (L) and capital (K) services that are available when output is (Q).
• C) the arithmetic relationship between the outputs that a firm uses and the inputs that it produces.
• D) the financial relationship between the inputs that a firm uses and the outputs that it produces.
• E) the level of output (Q) required to fully employ labour (L) and capital (K).

---

Definitions:

Price/earnings Ratio

A valuation metric for a stock, calculated as the market price per share divided by the earnings per share.

Share Repurchase

A corporate action in which a company buys back its own shares from the marketplace, which can increase the value of remaining shares.

Retention Ratio

The proportion of net income that is retained in the business rather than paid out to shareholders, indicating the company's reinvestment rate.

Dividend Yield

A stock’s cash dividend divided by its current price.