Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N).
-Refer to Scenario 25-1.In the production function,which variable would increase in value as technology improved?

Question

Quizplus · Accepted Answer

Technology or total factor productivity (TFP) is represented by the variable A in the production function. As technology improves, A increases, leading to an increase in the economy's overall production output (Y). The other variables (L, K, H, and N) represent the inputs used in production, and their values are typically fixed or determined by the economy's resources and labor force.