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:

Power Distribution

The process of distributing electrical power from generation sources to end users, or the allocation of power and authority in an organization.

Storage

The act of retaining or housing goods, information, or data in a designated space or medium for future use.

Business Incubator

An organization that supports the development and growth of startup companies by providing services such as management training, office space, or investment capital.

Leadership Skills

The attributes and abilities that enable an individual to inspire, influence, and guide others effectively.