If the Production Function Is Given By $Y = K ^ { 1 / 3 } L ^ { 2 / 3 }$

question 115

True/False

If the production function is given by $Y = K ^ { 1 / 3 } L ^ { 2 / 3 }$
, then labor's share of GDP is one-third.

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Definitions:

Ability-To-Pay Principle

A taxation principle that suggests taxes should be levied according to an individual's or entity's ability to pay, favoring a more equitable distribution of the tax burden.

U.S. Income Tax

A tax imposed by the U.S. government on the income generated by businesses and individuals within its jurisdiction.

FICA Tax

A federal payroll tax in the United States that funds Social Security and Medicare programs.

Progressive

A term that may refer to a system or policy where the rate increases as the taxable amount increases, often used in the context of taxation or a general approach promoting change or innovation.