In the Following Production Function,Y = F(K,NA),a 20% Increase in a Will

question 18

Multiple Choice

In the following production function,Y = f(K,NA) ,a 20% increase in A will cause which of the following variables to increase by 20%?

• A)labor
• B)effective labor
• C)output
• D)output per worker
• E) none of the above

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Definitions:

Times Interest Earned

A ratio that measures a company's ability to meet its interest payments based on its earnings before interest and taxes.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue, indicating the company's actual profitability.

Interest Expense

The cost incurred by an entity for borrowed funds; it is the price paid for the use of borrowed money.

Carrying Value

The amount at which an asset is recognized in the balance sheet, subtracting any accumulated depreciation or amortization.