GDP can be represented by the equation: GDP = F x (Fe/F)x (GDP/Fe). In this equation, the term (Fe/F)represents
A)the factor- utilization rate.
B)output per capital.
C)factor supply per level of output.
D)factor productivity.
E)income per person.

Question

Quizplus · Accepted Answer

The term (Fe/F) represents the factor-utilization rate, which indicates the proportion of available factors of production (like labor or capital) that are actually being used.

GDP Can Be Represented by the Equation: GDP = F