In an Economy with Production Function Y = 1

question 28

Multiple Choice

In an economy with production function Y = 1.5 ×

,K = 343,and L = 512.If factor markets are in equilibrium,then the rental price of capital is (approximately) ________,and the real wage is (approximately) ________.

• A)0.5;0.8
• B)7;8
• C)0.9;1.35
• D)1.4;0.4
• E)0.6;0.9

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Definitions:

Higher Levels

relates to positions, status, or stages that are advanced or superior in rank, quality, or degree in any hierarchical or structured context.

Performance

The execution or accomplishment of work, actions, tasks, or functions measured against preset known standards of accuracy, completeness, cost, and speed.

Objectives

Specific, measurable goals set by an individual or organization to achieve desired outcomes.

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expected outcomes and the attractiveness of those outcomes.