Suppose That the Production Function for the Economy Is Y

question 31

Multiple Choice

Suppose that the production function for the economy is Y = AK⁰.⁵ᴸ⁰.⁵.If the capital stock = 40 000,the quantity of labour = 10 000,and the efficiency index = 3,real GDP is

• A) $60 000.
• B) $75 000.
• C) $150 000.
• D) $300 000.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a company.

Current Assets

Assets on a balance sheet that are expected to be converted into cash, sold, or consumed within a year.

Current Liabilities

Financial obligations a company must pay within a year, such as loans, accounts payable, and other debts.