An Economy Initially Has 200 Units of Physical Capital Per

question 99

Multiple Choice

An economy initially has 200 units of physical capital per worker.Each year,it increases the amount of physical capital by 10%.According to the aggregate production function for this economy,each 1% increase in physical capital per worker,holding human capital and technology constant,increases output per worker by 0.25%.In 3 years' time,what is the level of physical capital per worker in this economy?

• A) 220 units
• B) 242 units
• C) 266.2 units
• D) 200 units

---

Definitions:

Atomic Components

Atomic components refer to the smallest units within a framework or system that cannot be broken down further without losing their functionality.

Inference Forms

The structures or patterns of logical reasoning where conclusions are drawn from premises based on rules of logical thinking.

Conj

A shortened form for "conjunction," representing words that function to connect words, phrases, clauses, or sentences.

MP

Often stands for "Member of Parliament", an individual elected to serve in the legislative body of a country. Alternatively, in logical reasoning, it stands for "Modus Ponens", a form of argument where from premises in the form "If P then Q" and "P", one infers "Q".