Suppose That the Production Function for the Economy Is: Y

question 61

Multiple Choice

Suppose that the production function for the economy is: Y = AK¹/⁴ᴸ³/⁴.Assume that real GDP is $8000 billion,capital stock is $32 000 billion,and the labour supply is 120 million (or 0.120 billion) workers.An increase of one worker will increase real GDP by

• A) $8.
• B) $50 000.
• C) $720 000.
• D) $6 000 000.

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Definitions:

Self-Handicapping

A cognitive strategy where individuals avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Situational

Pertaining to or influenced by the external environment, circumstances, or conditions rather than by individual traits or motivations.

Personality Characteristics

Traits and qualities that describe an individual's consistent behaviors, thoughts, and feelings.

Stable

Characterizing something that is unchanging, consistent, or not easily disturbed or upset over time.