Scenario 12-1. An economy's production form takes the form Y = AF(L, K, H, N).
-Refer to Scenario 12-1. In the production function, which of the following represents technology?
A)A
B)K
C)H
D)N

Question

Quizplus · Accepted Answer

In the production function Y = AF(L, K, H, N), A represents technology. This is because technology is the factor that captures the efficiency of the production process in transforming inputs into outputs. A measures the level of output that can be produced from a given set of inputs, and it reflects improvements in production techniques and managerial practices.