Suppose that the production function for the economy is Y = AK0.2L0.8. If the capital stock = 40,000, the quantity of labor = 10,000, and the efficiency index = 1, the marginal product of capital is
A) $0.066.
B) $0.20.
C) $1.05.
D) $1.58.
A
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Consider two economies: Barylia and Lithasia. The GDP per capita in Lithasia is $6,000 while the GDP per capita in Barylia is $12,000. Both countries grow exponentially at an annual rate of 10%
How will their GDPs vary over the next year? Is there any limitation of comparing the absolute levels of GDP per capita of both countries over the next years? If yes, what is a plausible solution?
The table above gives data for the nation of Pearl, a small island in the South Pacific. If a supply shock decreases the quantity of real GDP supplied by $6 billion at each price level, the new equilibrium real GDP is
A) $16 billion. B) $19 billion. C) $22 billion. D) $23 billion. E) $17 billion.
When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions
A) "how" B) "what" C) "defense" D) "for whom"
Which of the following statements about U.S. production is correct?
A. Construction accounts for a larger percentage of total production than does manufacturing. B. Real estate services account for 12.6 percent of the value of total pro-duction, larger than any other item of services or goods. C. Consumption goods and services represent 85 percent of U.S. produc-tion by value and that percentage doesn't fluctuate much. D. The manufacture of goods represents more than 50 percent of total production.