In the equation $y = \bar { A } k ^ { 1 / 3 }$ , $\bar { A }$
Represents:
A) total factor productivity
B) physical capital
C) natural resources
D) the capital = labor ratio
E) the real interest rate

Question

Quizplus · Accepted Answer

$\bar { A }$ represents total factor productivity, which is a measure of the efficiency with which inputs are used in the production process.

In the Equation y=Aˉk1/3y = \bar { A } k ^ { 1 / 3 }y=Aˉk1/3

In the Equation $y = \bar { A } k ^ { 1 / 3 }$