If Q Is Total Real Output,K Is Capital in Use,L

question 143

Multiple Choice

If Q is total real output,K is capital in use,L is labor employed,an increase in the productivity of labor would imply a(n) :

• A)increase in K/L.
• B)increase in L/K.
• C)increase in Q/L.
• D)decrease in Q/K.
• E)decrease in (Q + K)/L.

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Definitions:

Domestic Investment

Financial contributions toward assets and projects within one's own country, aimed at enhancing economic growth.

Law of One Price

The economic theory that states that in efficient markets, identical goods should have only one price.

Price Ceiling

A legal maximum on the price at which a good can be sold.

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.