The Production Function Y = F(k) Means

question 68

Multiple Choice

The production function y = f(k) means:

• A) labor is not a factor of production.
• B) output per worker is a function of labor productivity.
• C) output per worker is a function of capital per worker.
• D) the production function exhibits increasing returns to scale.

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Definitions:

Secured Goods

Items that are used as collateral for a loan or are subject to a security interest, ensuring the fulfillment of an obligation.

Acceleration

A provision in a mortgage agreement that allows the mortgagee to demand the entire balance due when the mortgagor misses a single installment payment.

Debt Due

The amount of money that is owed and should be paid, typically by a specific deadline or upon demand.

Priority Loan

A type of loan that is given precedence over other debts, often in the context of repayment terms and bankruptcy proceedings.