If the production function is Y = AK2/3L1/3 in the land of Solovia,and the labour force increases by 5 percent while capital is constant,labour productivity will:
A) increase by 3.33 percent.
B) increase by 1.67 percent.
C) decrease by 1.67 percent.
D) decrease by 3.33 percent.
Correct Answer:
Verified
Q50: Labour hoarding refers to:
A)keeping workers in low-wage
Q52: Total factor productivity may be measured by:
A)subtracting
Q60: The productivity slowdown that began in the
Q62: Changes that can increase measured total factor
Q63: If capital grows at 3 percent per
Q63: A recent study suggests that the spectacular
Q64: When capital increases by
Q66: Exhibit: Factors of Production Data Q74: If the per-worker production function is y Q80: If the per-worker production function is y
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents