In this section we use Y/L, Y/pop, L/pop, and K/L extensively. Say that we're looking at...
In this section we use Y/L, Y/pop, L/pop, and K/L extensively. Say that we're looking at these values for a country very much like the U.S. Which of the following are we least likely to see? Values have been converted into U.S. dollars.
a. K/L = $120,000 b. L/pop = .40 c. Y/L = $120,000 d. Y/pop = $10,000
Homework Answers
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Ans: a. K/L = $120,000.
Reason: K and L appear in units, not monetary terms.
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