The "A" term in the production function Y = F(A,K,eL)represents which factor of production in the Solow growth model?
A) physical capital
B) human capital
C) technological knowledge
D) organization of resources

Question

Quizplus · Accepted Answer

In the Solow growth model, the "A" term represents technological knowledge, which is a form of intangible capital that affects the efficiency of labor and capital. It is a factor of production that is not directly observable and accumulates over time due to research and development, innovation, and learning by doing. Therefore, the best choice is C.

The "A" Term in the Production Function Y = F(A,K,eL)represents