QUESTION 1 From one year to the next, a country's output rose from 4,000 to 5,000, its capital stock rose from 2,000 to 2,500, and its labor force increased from 100 to 110. The clasticities of output with respect to capital and labor are 0.3 and 0.7, respectively. What share of the output's increase is explained by the change in the capital stock? OA Less than half O B. Exactly half OC. More than half OUE TION S
QUESTION 1 From one year to the next, a country's output rose from 4,000 to 5,000, its capital stock rose from 2,000 to 2,500, and its labor force increased from 100 to 110. The clasticities of output with respect to capital and labor are 0.3 and 0.7, respectively. What share of the output's increase is explained by the change in the capital stock? OA Less than half O B. Exactly half OC. More than half OUE TION S
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.2P
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![QUESTION 1
From one year to the next, a country's output rose from 4,000 to 5,000, its capital stock rose from 2,000 to 2,500, and its labor force increased from 100 to 110. The
clasticities of output with respect to capital and labor are 0.3 and 0.7, respectively. What share of the output's increase is explained by the change in the capital
stock?
OA Less than half
O B. Exactly half
OC. More than half](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec1a66d6-e416-4b97-9f23-2ea1d8ee6e93%2F1ebd6b15-a06e-4e69-98e8-a1304642591b%2Fvvnaevm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 1
From one year to the next, a country's output rose from 4,000 to 5,000, its capital stock rose from 2,000 to 2,500, and its labor force increased from 100 to 110. The
clasticities of output with respect to capital and labor are 0.3 and 0.7, respectively. What share of the output's increase is explained by the change in the capital
stock?
OA Less than half
O B. Exactly half
OC. More than half
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