Suppose the Current Level of Output Is 5000

question 99

Multiple Choice

Suppose the current level of output is 5000.If the elasticities of output with respect to capital and labour are 0.3 and 0.7 respectively,a 10% increase in capital combined with a 5% increase in labour and a 5% increase in productivity would increase the current level of output to

• A)5015.
• B)5325.
• C)5575.
• D)6000.

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Definitions:

Submandibular Gland

A salivary gland located beneath the floor of the mouth that produces saliva.

Parotid Gland

The largest of the salivary glands, located near the ear, which produces saliva to facilitate chewing and swallowing.

Lesser Curvature

The concave medial surface of the stomach, running from the esophagus to the duodenum, and a site for various diseases.

Stomach

A major digestive organ located in the upper abdomen, responsible for the enzymatic breakdown of food.