The output an economy can produce with one unit of capital and one unit of labor is ________.
A)indicated by the A variable in the Cobb-Douglas production function
B)commonly referred to as labor productivity
C)a variable that depends on how many units of capital and labor are available
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The output an economy can produce with one unit of capital and one unit of labor is indeed indicated by the A variable in the Cobb-Douglas production function, which represents total factor productivity.

The Output an Economy Can Produce with One Unit of Capital