Suppose Production in an Economy Is Represented by a Cobb-Douglas

question 149

Multiple Choice

Suppose production in an economy is represented by a Cobb-Douglas production function.If each worker in the economy becomes more productive,while the number of workers in the economy,the physical capital stock,and the state of technology remain unchanged,________.

• A) the GDP of the economy will increase
• B) the income per capita in the economy will decrease
• C) the inflation rate in the economy will decrease
• D) the exchange value of its currency will increase in the foreign exchange market

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change, often used in mathematics, statistics, and scientific experiments to represent quantities or qualities that can assume different values.

Open Sentence

A mathematical or logical statement containing one or more variables that does not have a definitive truth value until the variables are specified.

Variable

An aspect, trait, or element that has the potential to change or differ.

Sentence

A sequence of words that is self-contained, typically featuring a subject and a verb, to deliver a statement, interrogative, exclamation, or imperative.