In the equation , 1/3 represents:
A) total factor productivity.
B) physical capital.
C) natural resources.
D) the output share of capital.
E) the real interest rate.

Question

In the equation  , 1/3 represents:
A) total factor productivity. 
B) physical capital. 
C) natural resources. 
D) the output share of capital. 
E) the real interest rate.

Quizplus · Accepted Answer

1/3 represents the output share of capital in the equation, which is a measure of the proportion of output generated by physical capital. Total factor productivity (choice A) is a measure of how efficiently all inputs in production are used to generate output, and is not represented by 1/3 in the equation. Physical capital (choice B) is one of the inputs in production, not a measure of output share. Natural resources (choice C) are another input in production, not represented by 1/3 in the equation. The real interest rate (choice E) is also not represented by 1/3 in the equation.

In the Equation , 1/3 Represents