The Productivity of a South American Country Is Given by the Function

question 27

Multiple Choice

The productivity of a South American country is given by the function when x units of labor and y units of capital are used.What is the marginal productivity of labor and what is the marginal productivity of capital when the amounts expended on labor and capital are 288 units and 18 units, respectively? Should the government encourage capital investment rather than increased expenditure on labor at this time in order to increase the country's productivity? Please answer yes or no.

• A)The marginal productivity of labor is 5.The marginal productivity of capital is 80.The government should have encouraged increased spending on capital rather than on labor.
• B)The marginal productivity of labor is 3.75.The marginal productivity of capital is 20.The government should not have encouraged increased spending on capital rather than on labor.
• C)The marginal productivity of labor is 3.75.The marginal productivity of capital is 20.The government should have encouraged increased spending on capital rather than on labor.
• D)The marginal productivity of labor is 5.The marginal productivity of capital is 80.The government should have encouraged increased spending on labor rather than on capital.

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Definitions:

Embryonic

Pertains to the earliest stage of development, typically before birth, often used in biology to describe the early stages of an organism's development.

Germinal

Pertaining to the earliest stage of development, particularly right after fertilization in organisms.

Critical

Involves careful evaluation and judgement, often to find faults or assess quality.

Developmental Psychologist

A professional in psychology who studies the growth and development of humans throughout their lifespan, focusing on physical, cognitive, and social changes.