What Does the Cobb-Douglas Production Function Assume About the Input

question 56

Multiple Choice

What does the Cobb-Douglas production function assume about the input shares in the economy?

• A)the capital share is smaller than the labor share of income
• B)both the capital and labor shares of income are positive
• C)both the capital and labor shares of income remain relatively constant over time
• D)all of the above
• E)none of the above

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Definitions:

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Foreign Country

A nation-state or territory that is recognized as independent and distinct from one's own country, governed by its own political and legal systems.

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A professional engineer who designs, analyzes, and maintains mechanical systems.

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A natural fuel such as coal, oil, or natural gas, formed in the geological past from the remains of living organisms.