If Y Is Output, K Is Capital, U Is the Fraction

question 27

Multiple Choice

If Y is output, K is capital, u is the fraction of the labour force in universities, L is labour, and E is the stock of knowledge, and the production Y = F (K,(1 - u) EL) exhibits constant returns to scale, then output (Y) will double if:

• A)K is doubled.
• B)K and u are doubled.
• C)K and E are doubled.
• D)L is doubled.

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Definitions:

Psychological Contract

An unwritten agreement between an employer and an employee that outlines mutual expectations, obligations, and perceptions.

Inducements

Incentives or rewards offered to motivate or encourage specific actions or behaviors.

Contributions

The act of giving or adding something to a common pool, or an individual’s involvement or role in bringing about a result.

Employment Relationship

The formal or informal arrangement between an employer and an employee that specifies the terms of employment, including responsibilities, work hours, and compensation.