Consider the following production function?
 Y = A×Ka×L1?a.
?
If a = 0.4, and over the past year total factor productivity (TFP) grew 2.6 percent, capital grew 2 percent, and labor grew 1 percent, what was the growth rate of output over the year?

A. 2 percent
B. 3 percent
C. 4 percent
D. 5 percent


Answer: C

Business

You might also like to view...

Which of the following is a restraining force behind global integration?

A) market needs B) management vision C) strategic intent D) national controls

Business

Industries that typically use process cost systems include chemicals, oil, metals, food, paper, and pharmaceuticals

Indicate whether the statement is true or false

Business

According to the 2010 U.S. Census, Asian Americans are a high-income, fast-growing racial group in America. In the context of situation analysis, under which of the following macro-level external environmental factors will this be included?

A. firm structure and systems B. legal and ethical issues C. technological advancements D. sociocultural/demographic factors E. natural factors

Business

Explain why an organization may choose to develop a cafeteria benefits plan for its employees.

What will be an ideal response?

Business