Scenario: Country X Has 1,000 Workers

question 117

Multiple Choice

Scenario: Country X has 1,000 workers. The country's aggregate production function is YX = 1.5 KX²/³ HX¹/³, where KX = 1,000,000 and HX = 2,500,000.
-Refer to the scenario above.Assume the country's human capital per worker increases and total efficiency units of labor now equal 2,000,000.How could this be the case?

• A) Total output must have increased.
• B) The labor force must have gotten smaller.
• C) The labor force must have gotten bigger.
• D) Average length of education must have decreased.

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Definitions:

Internal Promotions

The practice of filling vacancies within an organization by promoting existing employees rather than hiring externally.

Employee Stock Plans

Programs allowing employees to purchase or receive shares in the company they work for, often at advantageous conditions.

Classical Management

A theory of management that emphasizes rationality, efficiency, and a hierarchical structure of control, typically associated with the early 20th century.

Profit-Sharing Plans

A form of employee reward system where a company shares a part of its profits with its employees as a motivational and loyalty-enhancing tool.