In the production function Y = AF(K,N),A is ________,K is ________,and N is ________.
A)total factor productivity;the capital stock;the number of workers employed
B)total factor productivity;investment;the number of workers employed
C)the productivity of labour;the capital stock;the size of the labour force
D)the productivity of labour;investment;the size of the labour force

Question

Quizplus · Accepted Answer

A represents the correct terms for the variables in the production function. A represents total factor productivity, which is a measure of the efficiency with which inputs (capital and labor) are used in production. K represents the capital stock, which includes all the physical assets that are used in the production process. N represents the number of workers employed, which is one of the most important factors in determining the output level.

In the Production Function Y = AF(K,N),A Is ________,K Is