The Next Questions Refer to the Following

question 21

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.
-Imagine that for this economy TFP=10 hours = 400,and land =210.If the rate of depreciation is 5% and investment is 20% of output,what is the steady state level of output?

• A) 500
• B) 1000
• C) 3000
• D) 7000
• E) 15000

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Definitions:

Stock Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a stock at a specified price within a specified time period.

Stock Price

The price at which a particular stock is bought or sold on the market.

Put Contract

A financial contract giving the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a set price within a specified time.

Put Premium

A Put Premium is the price that the buyer of a put option pays to have the right to sell a specified amount of an underlying asset at a set price before the option expires.