In the Cobb-Douglas Production Function $Y = K ^ { a } L ^ { 1 - a }$

question 106

Multiple Choice

In the Cobb-Douglas production function $Y = K ^ { a } L ^ { 1 - a }$ , if a = 1/3, then:

• A) labor's share of GDP is two-thirds
• B) labor's share of GDP is one-third
• C) capital's share of GDP is two-thirds
• D) capital's share of income is one
• E) labor's share of income is three

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