Given That All Countries Have the Same Cobb-Douglas Production Function,i

question 106

Multiple Choice

Given that all countries have the same Cobb-Douglas production function,i.e.Y/N = (K/N) b,a ten-fold difference in per capita income requires a difference in capital per capita by a factor of

• A)10.
• B)10b.
• C)101/b.
• D)b.

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Definitions:

Allocated

Refers to the distribution or assignment of resources, costs, or expenses to various departments, projects, or activities.

Over Budget

A situation in which actual spending exceeds the planned or allocated budget.

Investment Turnover

A ratio that measures the efficiency of a company in generating sales or revenue from its investment in assets.

Sales

The total revenue generated from goods or services sold by a company during a specified period.