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The Equation y=Aˉk1/3y = \bar { A } k ^ { 1 / 3 }

Question 28

Multiple Choice

The equation y=Aˉk1/3y = \bar { A } k ^ { 1 / 3 } 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.

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