In an Economy with Production Function Y = 1

question 50

Multiple Choice

In an economy with production function Y = 1.5 × ,K = 343,and L = 512.If factor markets are in equilibrium,then the rental price of capital is (approximately) ________,and the real wage is (approximately) ________.

• A)0.5;0.8
• B)7;8
• C)0.9;1.35
• D)1.4;0.4
• E)0.6;0.9

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Definitions:

Farm Subsidies

Financial assistance programs provided by the government to farmers, aimed at stabilizing or increasing agricultural production and incomes.

U.S. Federal Debt

The total amount of money owed by the federal government of the United States, encompassing all outstanding Treasury bills, notes, and bonds.

GDP

Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.

Government Deficits

A financial situation that occurs when a government's expenditures exceed its revenues, leading to borrowing or the use of saved funds.