Let the Production Function Be Q = AL^aK^b

question 48

Multiple Choice

Let the production function be q = AL^aK^b.The function exhibits decreasing returns to scale if

• A) a + b = 1.
• B) a + b > 1.
• C) a + b < 1.
• D) Cannot be determined with the information given.

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Definitions:

Job Enlargement

A human resource strategy where additional tasks of similar skill level are added to a worker's responsibilities to increase job diversity and employee motivation.

Job Enrichment

Enhancing a job by adding tasks that increase responsibility, autonomy, and opportunities to grow, improving employee satisfaction and performance.

Psychological State

The mental condition of an individual at a particular time, influenced by emotions, thoughts, and behavior patterns.

Job Enrichment Model

A method of job design aimed at increasing employee satisfaction by adding more meaningful tasks and duties, which enhances motivation and performance.