For an Economy with a Cobb-Douglas Production Function in Which

question 23

Multiple Choice

For an economy with a Cobb-Douglas production function in which 1/3 of income goes to capital and 2/3 of income goes to labor,and which has a 6% rate of depreciation,the Golden Rule investment rate is

• A) 1/3
• B) 2/3
• C) 6%
• D) 2%
• E) 4%

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Definitions:

Parietal Lobes

The lobes that contain the somatosensory cortex (where touch, pressure, temperature, and pain register) and other areas that are responsible for body awareness and spatial orientation.

Cerebral Hemisphere

Either of the two symmetrical halves of the brain (left and right), each controlling specific functions and aspects of perception, cognition, and motor control.

Touch

The sense that allows organisms to perceive pressure, temperature, and pain through physical contact.

Right Hemisphere

The half of the human brain typically associated with processing visual and spatial information, creativity, and intuition.