Based on a Cobb-Douglas Production Function and Perfect Capital Mobility

question 60

Multiple Choice

Based on a Cobb-Douglas production function and perfect capital mobility, capital should flow to economies in which:

• A)capital is relatively scarce.
• B)capital is relatively abundant.
• C)technological production capabilities are inferior.
• D)labour is relatively scarce.

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Definitions:

Risks

are potential events or conditions that can lead to a negative outcome, often evaluated in decision-making processes.

Prevalence

The proportion of a population found to have a condition, typically measured within a specific timeframe.

Disorder

A state of confusion or disarray, or a disruption to regular or normal function, particularly in reference to health as a physical or mental condition that is not in order.

Population

The total number of individuals or organisms of a particular species living in a specific geographic area or space at a given time.