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In a Small Country Each Labor Hour Has Capital Stock

Question 7

Multiple Choice

In a small country each labor hour has capital stock equal to 900 units. This year it produced 20 units of new capital goods, with a depreciation rate of 20 percent, and a production function of . What will its level of capital stock per labor In a small country each labor hour has capital stock equal to 900 units. This year it produced 20 units of new capital goods, with a depreciation rate of 20 percent, and a production function of . What will its level of capital stock per labor hour be next year? A) 920 units B) 720 units C) 900 units D) 740 units hour be next year?


A) 920 units
B) 720 units
C) 900 units
D) 740 units

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