Suppose That in 2002 Freedonia Had GDP Equal to 2000

question 40

Multiple Choice

Suppose that in 2002 Freedonia had GDP equal to 2000 million, the capital stock was equal to 1700 million, the number of employees equaled 70 million. The production function is Y = AK^0.25N0.75. Total factor productivity of the economy in that year was approximately equal to

• A) 0.09.
• B) 2.61.
• C) 4.19.
• D) 12.87.

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Definitions:

Average Age

A statistical measure that represents the central or typical age in a population or group of objects, calculated by summing the ages and dividing by the number of subjects.

Health Care

The organized provision of medical services to individuals or communities to maintain or improve health, including prevention, diagnosis, treatment, and rehabilitation.

Deductibles and Copayments

are cost-sharing mechanisms in insurance policies where the insured must pay a fixed amount before the insurer covers expenses (deductible) and a portion of the cost of services (copayment).

Health Care Demanded

Refers to the quantity of health care services people are willing and able to purchase at different price levels.