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

---

Definitions:

Roth IRAs

Retirement accounts where contributions are made with after-tax dollars, and qualified withdrawals in the future are tax-free.

Coverdell Education Savings Accounts

A tax-advantaged investment account in the United States designed to encourage savings for future education expenses.

Keoghs

Retirement plans for self-employed individuals and unincorporated businesses, allowing tax-deferred savings for retirement.

Employer-sponsored Retirement Plan

A retirement savings plan provided by an employer to its employees, often with tax advantages for contributions and investment earnings.