The Production Function $Y _ { t } = A _ { t } K _ { t } ^ { 1 / 3 } L _ { t } ^ { 2 / 3 }$

question 79

Multiple Choice

The production function $Y _ { t } = A _ { t } K _ { t } ^ { 1 / 3 } L _ { t } ^ { 2 / 3 }$ , where A_t is the stock of ideas, K_t is capital, and L_t is labor, assumes:

• A) A_t is rivalrous
• B) A_t is nonrivalrous
• C) K_t is nonrivalrous
• D) L_t is rivalrous
• E) A_t is fixed

---

Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theory of the benefits of a free market economy.

Public Good

A service or product offered for free to every member of a society, made available by either governmental entities or private organizations without aiming for financial gain.

Economic Functions

The roles and operations performed by an economic system, such as allocation of resources, distribution of income, and stabilization of the economy.

U.S. Government

The federal government of the United States, composed of three distinct branches: legislative, executive, and judicial, as established by the Constitution.