If a Technological Change Occurs Such That the Production Function

question 45

Multiple Choice

If a technological change occurs such that the production function shifts from q = 10K^0.5 L^0.5 to q = 10.5K^0.3 L^0.5,then the technological change is

• A) both neutral and non-neutral.
• B) neutral.
• C) non-neutral.
• D) Not enough information given.

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Definitions:

ASPE

Accounting Standards for Private Enterprises, a set of Canadian accounting guidelines for privately owned businesses, providing simpler alternatives to IFRS.

CICA Handbook

The Canadian Institute of Chartered Accountants Handbook, containing standards and guidelines for accounting and auditing practices in Canada.

ASPE

Accounting Standards for Private Enterprises; a set of accounting principles designed specifically for private companies in Canada.

PSAB Recommendations

Advisory statements and guidelines issued by the Public Sector Accounting Board, which influence the accounting and financial reporting practices within the public sector.