Suppose that the production function for the economy is: Y = AK1/4L3/4. Assume that A = 1,000, the capital stock is $32,000 billion, and the current labor force is 120 million (or 0.120 billion) workers
All else equal, if the labor force increased by 20 million workers, the value of the marginal product of capital will be A) $0.0104.
B) $0.0239.
C) $0.0639.
D) $0.0717.
B
Economics
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After downing three glasses of lemonade on a hot summer afternoon, Todd says, "You would have to pay me to drink another glass!" This statement best illustrates
a. the law of demand. b. the substitutability among goods. c. the law of diminishing marginal utility. d. that chocolate candy bars are an inferior good.
Economics
If the income elasticity of a good is negative, we can conclude that the good is
a. an inferior good. b. a normal good. c. a luxury good. d. a necessity.
Economics