When firms spend more on additional holdings of raw materials, ...

[karateprodigy]

When firms spend more on additional holdings of raw materials, parts and finished goods ________.
 
  A) they are increasing their fixed investment
  B) they are increasing their inventory investment
  C) they are increasing their private consumption
  D) all of the above
  E) none of the above

Question 2

Given the production function Y = A , if an economy's capital per worker k is 27 thousand, and its total factor productivity A is 0.5, then output per worker is (approximately) ________.
 
  A) 13,500
  B) 40,500
  C) 3,000
  D) 5,000
  E) 1,500

[joanwhite]

Answer to Question 1

B

Answer to Question 2

E