The aggregate production function of Ritland is Y = A × K0.3 × H0.7. The total output produced in Ritland in a certain year was worth $135,000
The technology used in the country improved over the next 10 years while the capital stock and the efficiency units of labor remained approximately the same. Which of the following is likely to be true in this case?
A) The Human Development Index of the country is likely to improve.
B) The gross domestic product of the country is likely to increase.
C) The gross domestic product of the country is likely to decrease.
D) The inflation rate in the country is likely to reduce.
B
You might also like to view...
A permanent increase in the real wage rate has a ________ income effect on labor supply than a temporary increase in the real wage, so labor supply is ________ with a permanent wage increase than for a temporary wage increase
A) larger; more B) larger; less C) smaller; more D) smaller; less
John has just eaten another potato chip and his total utility decreased. This means that John's marginal utility for this additional potato chip is
A) positive. B) negative. C) zero. D) not determinable without more information.
Who is responsible for U.S. monetary policy? The _________ appoints the members and the Chairman of the Board of Governors of the Fed. The ________ is responsible for the conduct of monetary policy.
Fill in the blank(s) with the appropriate word(s).
George always purchases the soda with the lowest price. For George, the cross price elasticity of demand for two brands of soda will be
A. equal to 0. B. negative. C. positive. D. impossible to determine without more information.