Assume a Cobb-Douglas Production Function Where the Share of Labor

question 34

Multiple Choice

Assume a Cobb-Douglas production function where the share of labor is 0.7 and the share of capital is 0.3.If there is no technological progress, capital grows at 1.5%, and labor doesn't grow at all, what is the growth rate of output?

• A)0)45%
• B)0)60%
• C)1)05%
• D)1)50%
• E)2)00%

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Definitions:

Framing

The way information is presented or phrased, which can significantly affect decisions and judgments by highlighting certain aspects over others.

Success Rate

A measure or percentage indicating the proportion of successes in a specific number of attempts or operations.

Failure Rate

A measure of the frequency at which an engineered system or component fails, expressed in failures per unit of time.

Cognition

The act of understanding and learning through mental processes, experiences, and sensory engagement.