Let a represent labour's share of total output. Economic growth attributable to labour growth is represented by:
A) agA.
B) 1/a.
C) agk.
D) agN.
E) agy.

Question

Quizplus · Accepted Answer

Economic growth attributable to labour growth is represented by agN, where N represents the number of workers. This is because an increase in the number of workers can lead to an increase in output, as long as there is sufficient capital and technology to support that growth. Choice A (agA) is incorrect because A does not represent labour, but rather total factor productivity. Choice B (1/a) is incorrect because it does not take into account the specific contribution of labour to economic growth. Choice C (agk) is incorrect because k represents capital, not labour. Choice E (agy) is incorrect because y represents total output, which includes both labour and capital.

Let a Represent Labour's Share of Total Output