Given the Production Function Y = a ,If

question 59

Multiple Choice

Given the production function Y = A ,if an economy's capital per worker k is $27 thousand,and its total factor productivity A is 0.5,then output per worker is (approximately) ________.

• A)$13,500
• B)$40,500
• C)$3,000
• D)$5,000
• E)$1,500

---

Definitions:

Cost of Capital

The rate of return that a company must pay on its investments to satisfy its investors or creditors.

Cash Flows

The movement of money into and out of a business, representing earnings and expenditures.

Internal Rate

Often referring to the Internal Rate of Return (IRR), it's the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.