The equation has what two important implications?
A) Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.
B) Output per person tends to be lower when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.
C) Output per person tends to be higher when (1) the productivity parameter is lower and (2) the amount of capital per person is higher.
D) Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is lower.
E) The population tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.

Question

The equation  has what two important implications?
A) Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher. 
B) Output per person tends to be lower when (1) the productivity parameter is higher and (2) the amount of capital per person is higher. 
C) Output per person tends to be higher when (1) the productivity parameter is lower and (2) the amount of capital per person is higher. 
D) Output per person tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is lower. 
E) The population tends to be higher when (1) the productivity parameter is higher and (2) the amount of capital per person is higher.

Quizplus · Accepted Answer

The equation 11eab38d_0764_5d3e_a5fb_75cb3108977d_TB6622_11 represents the production function, which shows the relationship between the inputs (productivity and capital) and output (per person). The equation suggests that higher productivity and more capital per person lead to higher output per person, implying that choice A is the correct answer.

The Equation Has What Two Important Implications