An economy's production function is Y = A , and the economy's total output in equilibrium is $90 billion. Total capital income in this economy is ________

A) $27 billion
B) $30 billion
C) $21 billion
D) $70 billion
E) none of the above

A

Economics

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According to the principle of diminishing returns, if the number of workers is increased beyond the point of diminishing returns, then the additional worker

A) increases total output by more than the amount of previous workers. B) increases total output by the same amount as previous workers. C) decreases total output. D) increases total output by less than the amount of previous workers.

Economics

Suppose the real exchange rate is such that the market for foreign-currency exchange has a surplus. This surplus will lead to

a. an appreciation of the dollar, an increase in U.S. net exports, and so an increase in the quantity of dollars demanded in the foreign exchange market. b. an appreciation of the dollar, a decrease in U.S. net exports, and so a decrease in the quantity of dollars demanded in the foreign exchange market. c. a depreciation of the dollar, an increase in U.S. net exports, and so an increase in the quantity of dollars demanded in the foreign exchange market. d. a depreciation of the dollar, a decrease in U.S. net exports, and so a decrease in the quantity of dollars demanded in the foreign exchange market.

Economics