Assume That the Production Function Is Cobb-Douglas with Parameter $\alpha$ = 03 If Factors Are Paid Their Marginal Products, Capital and =

question 50

Multiple Choice

Assume that the production function is Cobb-Douglas with parameter $\alpha$ = 0.3. If factors are paid their marginal products, capital and labor, respectively, receive the shares of income:

• A)0.3 and 0.3.
• B)0.7 and 0.7.
• C)0.3 and 0.7.
• D)0.7 and 0.3.

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Definitions:

Voluntary Reasons

Motives or causes that lead individuals to make choices freely without external coercion, often influencing personal and economic decisions.

Labor Force

The cumulative count of individuals who either have a job or are seeking work actively.

Business Cycle Theories

Various economic theories that attempt to explain the causes and dynamics of the business cycle, including expansions and contractions in economic activity.

Endogenous

Originating from within an economic model or system; refers to factors that are explained by the internal workings of the model.