In the Cobb-Douglas Production Function

question 51

Multiple Choice

In the Cobb-Douglas production function
,labor's share of GDP is _________.

• A)two-thirds regardless of how much labor there is
• B)two-thirds but can change as more laborers are added
• C)one-third regardless of how much labor there is
• D)always equal to one
• E)Not enough information is given.

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Definitions:

Deposit Method

An accounting method used for recognizing revenue and expenses related to long-term contracts where the earnings process is incomplete.

Revenue Recognition

The accounting principle that outlines the specific conditions under which revenue is recognized or recorded.

Initial Direct Costs

Upfront expenditures that are directly associated with securing a contract or lease, such as legal and brokerage fees.

Service Costs

The expenses recognized in the period in which employees render services to obtain future benefits under a defined benefit plan.