Assume the Production Function Is Represented by Y = F

question 36

Multiple Choice

Assume the production function is represented by Y = F (K, AN) . Now suppose the variable, A, increases by 20%. This implies that:

• A) the same output can be produced with 20% more labour.
• B) the same output can be produced with 20% less labour.
• C) the same quantity of labour can produce half the output.
• D) the same output can be produced with half the capital.
• E) the same quantity of labour can produce twice the output.

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Definitions:

Difficult To Test

Describes something that poses challenges or complications when trying to evaluate, measure, or examine its properties or effects.

Unconditional Positive Regard

A concept in psychology where an individual is accepted and loved by another without any conditions or limitations.

Rogers

Refers to Carl Rogers, an influential American psychologist who founded the humanistic approach to psychology.

Theory

A systematic set of ideas intended to explain facts or phenomena, often based on principles independent of the things to be explained.