Scenario 25-1

question 161

Multiple Choice

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N) .
-Refer to Scenario 25-1.If the production function has the constant-returns-to-scale property,then it could be rewritten as

• A) Y/L = AF(1,K/L,H/L,N/L)
• B) Y/L = AF(L,1,H/L,N/L)
• C) Y/L = AF(L,K/L,1,N/L)
• D) Y/L = AF(L,K/L,H/L,1)

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Definitions:

Interest Rate

The portion of a total amount of money that is required as payment for borrowing it, typically expressed on a yearly basis.

Compounded Annually

A method where interest is calculated on the initial principal and also on the accumulated interest of previous periods, applied once a year.

Post-secondary Education

Education that takes place after high school, including college, university, and vocational training.

Trust Fund

A fund comprised of assets, such as stocks, bonds, property, or cash, held in a trust and managed by a trustee for the benefit of someone else.