Suppose the payments to capital and labor are (w*L*)/Y* = 2/3 and (r*L*)/Y* = 2/3, respectively. One implication of this result is: A) $w ^ { * } L ^ { * } + r ^ { * } K ^ { * } Y ^ { * }$ D) $\left( w ^ { * } L ^ { * } / r ^ { * } K ^ { * } \right) = Y ^ { * }$ E) $\left( w ^ { * } L ^ { * } / Y ^ { * } \right) \left( r ^ { * } K ^ { * } / Y ^ { * } \right) = 1$

Question

Suppose the payments to capital and labor are (w*L*)/Y* = 2/3 and (r*L*)/Y* = 2/3, respectively. One implication of this result is:
A) $w ^ { * } L ^ { * } + r ^ { * } K ^ { * } < Y ^ { * }$
B) $w ^ { * } L ^ { * } + r ^ { * } K ^ { * } = Y ^ { * }$
C) $w ^ { * } L ^ { * } + r ^ { * } K ^ { * } > Y ^ { * }$
D) $\left( w ^ { * } L ^ { * } / r ^ { * } K ^ { * } \right) = Y ^ { * }$
E) $\left( w ^ { * } L ^ { * } / Y ^ { * } \right) \left( r ^ { * } K ^ { * } / Y ^ { * } \right) = 1$

Quizplus · Accepted Answer

The Answer of Suppose the payments to capital and labor are (w*L*)/Y* = 2/3 and (r*L*)/Y* = 2/3, respectively. One implication of this result is:
A) $w ^ { * } L ^ { * } + r ^ { * } K ^ { * } < Y ^ { * }$
B) $w ^ { * } L ^ { * } + r ^ { * } K ^ { * } = Y ^ { * }$
C) $w ^ { * } L ^ { * } + r ^ { * } K ^ { * } > Y ^ { * }$
D) $\left( w ^ { * } L ^ { * } / r ^ { * } K ^ { * } \right) = Y ^ { * }$
E) $\left( w ^ { * } L ^ { * } / Y ^ { * } \right) \left( r ^ { * } K ^ { * } / Y ^ { * } \right) = 1$

Suppose the Payments to Capital and Labor Are (W*L*)/Y* = w∗L∗+r∗K∗<Y∗w ^ { * } L ^ { * } + r ^ { * } K ^ { * } < Y ^ { * }w∗L∗+r∗K∗<Y∗

Suppose the Payments to Capital and Labor Are (WL)/Y* = $w ^ { * } L ^ { * } + r ^ { * } K ^ { * } < Y ^ { * }$