If the production function in the Solow growth model is given by q = f(human capital,physical capital),then in this model:
A) there is no investment.
B) there is no labor.
C) labor is represented by the human capital variable.
D) there is no depreciation.
E) there is no economic growth.

Question

Quizplus · Accepted Answer

The production function in the Solow growth model includes a variable for human capital, which represents labor. Therefore, labor is represented in the model through the human capital variable. The other options are incorrect: A) Investment is represented through physical capital, B) there is no indication that there is no labor in the model, D) Depreciation is not mentioned in the given information, and E) Economic growth is the focus of the Solow growth model, which is why it includes a production function.

If the Production Function in the Solow Growth Model Is