What Does the Cobb-Douglas Production Function Assume About the Input

question 52

Multiple Choice

What does the Cobb-Douglas production function assume about the input shares in the economy?

• A)the capital share is larger than the labor share of income
• B)both the capital and labor shares of income grow over time
• C)both the capital and labor shares of income remain relatively constant over time
• D)the capital share of income is equal to the labor share of income
• E)none of the above

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Definitions:

Narcolepsy

A neurological disorder that affects the control of sleep and wakefulness, leading to excessive daytime sleepiness and uncontrollable sleep attacks.

Awake

The state of being conscious and aware of one's surroundings, as opposed to being asleep.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, reduced muscle activity, and inhibition of nearly all voluntary muscles during rapid eye movement (REM) sleep.

Consolidation

The process by which memories become stable in the brain; a process believed to involve the strengthening of the neural connections that form memories.