What Do You Think Would Be the Cobb-Douglas Single Best

question 12

Multiple Choice

What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?

• A)to increase their stock of capital
• B)to increase their labor force
• C)to find more efficient ways to allocate and use capital and labor
• D)to ask help of the rich countries
• E)none of the above

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Definitions:

Gross Profit

The financial metric that subtracts the cost of goods sold from sales revenue, representing the amount a company makes after covering the direct costs associated with production.

Selling Expenses

Costs associated with marketing and selling a company's products or services.

Net Income

Net income, also known as net profit, is the total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.

Sales Tax

A tax imposed by a government on the sale of goods and services, typically a percentage of the retail price paid by the consumer.