Neco Model Questions Vol1 2021 Economics Question 12
Practice objective / multiple choice question 12 from the 2021 Neco Model Questions Vol1 Economics examination.
The manufacturing sector's output is described by the Cobb‑Douglas production function \(Y = A K^{\alpha} L^{\beta}\) with constant returns to scale (\(\alpha+\beta = 1\)). Between 2015 and 2018 the sector's real output rose from \(\text{₦}150\) billion to \(\text{₦}165\) billion, while the capital stock increased from \(\text{₦}500\) billion to \(\text{₦}600\) billion. Assuming the labour force remained unchanged, determine the capital‑share parameter \(\alpha\) (to two decimal places).
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About This Question
This is Neco Model Questions Vol1 2021 Economics Question 12. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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