Suppose the Economy's Production Function Is Y = AK⁰

question 95

Multiple Choice

Suppose the economy's production function is Y = AK^0.3N0.7.If K = 2000,N = 100,and A = 1,then Y = 246.If A rises by 10 percent,and K and N are unchanged,by how much does Y increase?

• A)5%
• B)10%
• C)15%
• D)20%

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Definitions:

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Organizational Effectiveness

Measures how efficiently and effectively an organization meets its goals and satisfies its stakeholders.

Valuable Knowledge

Information or expertise that is considered highly beneficial or insightful, often contributing to improved outcomes or competitive advantage.

Social Entities

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