If Y Is Output, K Is Capital, U Is the Fraction

question 78

Multiple Choice

If Y is output, K is capital, u is the fraction of the labor force in universities, L is labor, and E is the stock of knowledge, and the production Y = F(K,(1 - u) EL) exhibits constant returns to scale, then output (Y) will double if:

• A) K is doubled.
• B) K and u are doubled.
• C) K and E are doubled.
• D) L is doubled.

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Definitions:

Institutions

Established societal practices and organizations that structure behavior and interactions within a community or society.

Consensus Theories

Sociological theories that emphasize the role of shared norms and values in maintaining order and stability in society.

Shared Norms

Are collectively upheld rules and expectations regarding appropriate behavior within a society or group, guiding members in their interactions.

Tacit Agreements

Unspoken understandings or contracts between parties, often based on common norms or expectations rather than explicit communication.