Suppose That the Production Function for the Economy Is: Y

question 8

Multiple Choice

Suppose that the production function for the economy is: Y = AK¹/⁴ᴸ³/⁴.Assume that A = 1000,the capital stock is $32 000 billion,and the current labour force is 120 million (or 0.120 billion) workers.All else equal,if the labour force increases by 20 million workers,the value of the marginal product of capital will be

• A) $0.0104.
• B) $0.0239.
• C) $0.0639.
• D) $0.0717.

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Definitions:

Learning Theory

A conceptual framework describing how knowledge is absorbed, processed, and retained during learning.

Identity Achievement

The status of adolescents who commit to a particular identity following a period of crisis during which they consider various alternatives.

Identity Foreclosure

The status of adolescents who prematurely commit to an identity without adequately exploring alternatives.

Moratorium

The status of adolescents who may have explored various identity alternatives to some degree but have not yet committed themselves.