From the Cobb-Douglas Production Function We Learn That There Are

question 22

Multiple Choice

From the Cobb-Douglas production function we learn that there are two sources that help explain cross-country differences in per capita income: ________ and ________.

• A)capital;labor productivity
• B)labor share of income;TFP
• C)TFP;capital per person
• D)labor per person;capital
• E)none of the above

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Definitions:

Maximin Strategy

The maximin strategy is a decision rule used under uncertainty, where the decision maker selects the option with the least worst outcome, maximizing the minimum gain.

Equilibrium

A condition in which the equilibrium of market supply and demand stabilizes prices.

Maximin Strategy

A decision rule used in game theory and decision-making to maximize the minimum gain that can be achieved.

Equilibrium

A state in an economy where supply equals demand, leading to a stable price for goods and services.