The Leontief Production Function

question 84

Multiple Choice

The Leontief production function:

• A) implies inputs are used in variable proportions.
• B) implies inputs are used in fixed proportions.
• C) is Q = max {bK, cL}.
• D) is Q = aK + bL.

---

Definitions:

Euros

The eurozone's official currency, adopted by 19 out of the 27 countries in the European Union.

Financial Account

A component of the balance of payments that records transactions involving financial assets and liabilities between residents of a country and the rest of the world.

Monetary Policies

Policies undertaken by a nation's central bank to control the money supply and interest rates to achieve macroeconomic goals.

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, ensuring stability in exchange rates.