The output per worker equation Y/L = A F(1, K/L, H/L, N/L) provides a mechanical summary of the four determinants of:
A)technology
B)diminishing returns
C)catch-up effect
D)productivity

Question

Quizplus · Accepted Answer

The output per worker equation Y/L = A F(1, K/L, H/L, N/L) is used to describe productivity, which is the amount of output per worker in an economy. The equation takes into account the four determinants of productivity: physical capital (K/L), human capital (H/L), natural resources (N/L), and technology (A). Therefore, the best choice is D, productivity.

The Output Per Worker Equation Y/L = a F(1, K/L