Post Utme Lasu 2018 Economics Question 33

Practice objective / multiple choice question 33 from the 2018 Post Utme Lasu Economics examination.

Post Utme Lasu 2018 Economics Objective / Multiple Choice
Question 33 POST_UTME_LASU • 2018 • ECONOMICS • objective

A government is considering a policy to increase the production of a particular good. The production function is given by \( Q = 2L^{0.5}K^{0.5} \), where L is labor and K is capital. If the government wants to increase production by 20%, what is the required increase in labor and capital?

Answer Options

A. \( \frac{dL}{L} = \frac{dK}{K} = 10% \)
Correct Answer B. \( \frac{dL}{L} = 10%, \frac{dK}{K} = 5% \)
C. \( \frac{dL}{L} = 5%, \frac{dK}{K} = 10% \)
D. \( \frac{dL}{L} = \frac{dK}{K} = 5% \)
Correct Answer
B
Correct Option:
\( \frac{dL}{L} = 10%, \frac{dK}{K} = 5% \)

About This Question

This is Post Utme Lasu 2018 Economics Question 33. It is one of the objective questions from the 2018 Post Utme Lasu Economics examination.

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