Scenario 12-1

question 88

Multiple Choice

Scenario 12-1. An economy's production form takes the form Y = AF(L, K, H, N) .
-Refer to Scenario 12-1. If the production function has the constant-returns-to-scale property, then it could be rewritten as

• A)Y/L = AF(1, K/L, H/L, N/L)
• B)Y/L = AF(L, 1, H/L, N/L)
• C)Y/L = AF(L, K/L, 1, N/L)
• D)Y/L = AF(L, K/L, H/L, 1)

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Definitions:

Export Promotion Policies

Government initiatives aimed at encouraging firms to export more of their goods and services, enhancing a country's trade balance.

Comparative Advantage

The ability of an entity to produce a good at a lower opportunity cost than another entity, promoting trade benefits.

Natural Experiments

Observational study situations where external circumstances or events have created conditions that mimic a controlled experiment.

Mimic

involves imitation or copying of actions, behavior, or practices, often without understanding the underlying principles or mechanics.