Use the Cobb-Douglas production function to answer this question. Suppose that the capital-labor ratio and the efficiency of the labor force are each raised to the power 1/2. If capital-labor ratio grows at 4% per year and if the efficiency of the labor force grows at 2% per year, then output per worker
A) will grow at 6% per year.
B) will grow at 2% per year.
C) will grow at 3% per year.
D) will grow at 5% per year.
Correct Answer:
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Q41: Each of the following is part of
Q42: Each of the following is part of
Q43: Whenever the Cobb-Douglas production function is used,
Q44: Use the Cobb-Douglas production function to answer
Q45: Use the Cobb-Douglas production function to answer
Q47: Each of the following is part of
Q48: Each of the following is part of
Q49: Each of the following is part of
Q50: Y/L is
A) the capital per unit of
Q51: K/L is
A) the capital per unit of
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