In the Solow production function,an increase in the term "A" refers to an increase in:
A) productivity.
B) the capital stock.
C) the rate of depreciation.
D) investment.

Question

Quizplus · Accepted Answer

The term "A" in the Solow production function represents total factor productivity, which refers to the efficiency with which inputs (capital and labor) are used in the production process. An increase in "A" implies an increase in productivity, meaning that the same amount of inputs can produce more output. Therefore, the correct choice is A.

In the Solow Production Function,an Increase in the Term "A