The Next Questions Refer to the Following

question 5

Multiple Choice

The next questions refer to the following.
Suppose the economy has TFP = 10, there are 400 hours worked, and 60 unit of capital and 210 units of land the Cobb-Douglas production function is:
Output = TFP x Hours^0.3 x Capital^0.3 x Land^0.2.
-In this economy,approximately how fast would the capital stock need to grow to produce growth of 1% per annum?

• A) 1% per annum
• B) 2.5% per annum
• C) 3.3% per annum
• D) 4.8% per annum
• E) 5.2% per annum

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Definitions:

Legalistic Management

An approach to management that heavily relies on formal rules, regulations, and procedures to make decisions and solve problems.

Theory Y

A management style that assumes employees are inherently motivated and responsible, favoring a participative approach.

Close Supervision

The process of overseeing employees' work and tasks very closely, with frequent monitoring and guidance.

Legislation

The act of making or enacting laws, often through a governmental body or legislative assembly.