If a Cobb-Douglas Production Function Has Alpha = 0

question 107

Multiple Choice

If a Cobb-Douglas production function has alpha = 0.34 and beta = 0.42, then a 1% increase in inputs results in a ________ change in output.

• A)0.8%
• B)8%
• C)0.76%
• D)-0.76%

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Definitions:

Iceberg Metaphor

A psychological model used to describe the conscious mind as the tip of the iceberg visible above water, with the unconscious mind as the larger mass below water.

Consciousness Levels

Refers to the varying degrees of awareness individuals have of themselves and the environment around them.

Ego

In Freud’s theory, the logical, rational, largely conscious system of personality, which operates according to the reality principle.

Psychic Energy

A concept in psychoanalytic theory referring to the force or drive within individuals that motivates them to seek pleasure and avoid pain.