In the Cobb-Douglas Production Function $\mathrm { Q } = \alpha \mathrm { L } ^ { \rho 1 } \mathrm {~K} ^ { \rho 2 }$

question 13

Multiple Choice

In the Cobb-Douglas production function ( $\mathrm { Q } = \alpha \mathrm { L } ^ { \rho 1 } \mathrm {~K} ^ { \rho 2 }$ ) :

• A) the marginal product of labor (L)is equal to ?1
• B) the average product of labor (L)is equal to ?2
• C) if the amount of labor input (L)is increased by 1 percent,the output will increase by ?1 percent
• D) a and b
• E) a and c

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Definitions:

Type II Error

A statistical mistake of failing to reject a false null hypothesis; also known as a false negative.

1 - β

The power of a statistical test, representing the probability of correctly rejecting the null hypothesis when it is false.

Type I Error

The false rejection of the true null hypothesis, often referred to as a "false positive," in the context of hypothesis testing.