Over the Past Year,output Grew 6%,capital Grew 2%,and Labor Grew

question 20

Multiple Choice

Over the past year,output grew 6%,capital grew 2%,and labor grew 4%.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,how much did productivity grow?

• A)2)0%
• B)2)6%
• C)3)0%
• D)3)3%

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Definitions:

Market System

An economic system in which decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

Private Property

A legal designation for the ownership of property by individuals or businesses, not by the state or government.

Government Ownership

The scenario where the government owns and operates business enterprises, typically in key sectors like transportation or utilities.

Private Property

Refers to land, buildings, or possessions owned by individuals or entities and not by the government or public organizations.