Given the Form of a Typical Production Function, Which of the Following

question 263

Multiple Choice

Given the form of a typical production function, which of the following would have the greatest impact on the output of a country?

• A) A increases by 50%.
• B) L increases by 50%.
• C) K increases by 50%.
• D) N increases by 50%.

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Definitions:

Prohibition

The legal act of prohibiting the manufacture, transportation, and sale of alcohol, most famously enacted in the United States from 1920 to 1933.

Andrew Mellon

Andrew Mellon was an American banker, businessman, industrialist, philanthropist, art collector, and politician who served as the U.S. Secretary of the Treasury from 1921 to 1932.

Treasury

A government department responsible for managing the monetary resources, including revenue and expenditure, of a country or state.

Tariffs

Taxes imposed on imported goods, often used to protect domestic industries from foreign competition or to generate revenue.