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

question 52

Multiple Choice

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

• A)the capital share is larger than the labor share of income
• B)both the capital and labor shares of income grow over time
• C)both the capital and labor shares of income remain relatively constant over time
• D)the capital share of income is equal to the labor share of income
• E)none of the above

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Definitions:

Uncollectible Accounts

Accounts receivable that are deemed to be uncollectible, leading to their removal from the accounts through a write-off process.

Write Off

The accounting action of declaring that an asset is partially or completely worthless.

Factored Accounts Receivable

The process of selling accounts receivable to a third party at a discount to quickly generate cash and reduce risk of non-payment.