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
C
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In the above figure, the total dollar amount of the Medicare subsidies provided by the government is equal to
A) the difference between Ps and P0 multiplied by QM. B) the difference between Ps and Pd multiplied by QM. C) the difference between P0 and Pd multiplied by Qd. D) the difference between Ps and Pd multiplied by Q0.
Edward is an unmarried man with no children. He loses his job as the manager of a company. After three years of job searching, Edward manages to finally get a job in a small company. Edward's three years of unemployment are most likely to result in _____
a. a loss of lifetime earnings for Edward b. a loss of human capital for the broader society c. the deterioration of health for the broader society d. a loss of social cohesion for the broader society