An economy's total labor income is $2 trillion, and total capital income is $1 trillion. In the Cobb-Douglas production function, the exponent on capital is ________
A) two-thirds
B) one-half
C) one-third
D) 0.3
E) none of the above
C
You might also like to view...
If the reserve ratio is designated by "r," how much of a deposit can banks lend out?
A) (1 - r) B) r / (1 - r) C) 1 / r D) 1 / (1 - r)
The magnitude of the slope of the budget line measures the
A) opportunity cost of the good on the horizontal axis in terms of the good on the vertical axis. B) opportunity cost of the good on the vertical axis in terms of the good on the horizontal axis. C) price elasticity of demand. D) price elasticity of supply.
When voluntary exchange takes place, both parties gain from the exchange
Indicate whether the statement is true or false
In the endogenous growth model presented in the text, suppose that u represents the fraction of time spent working (as opposed to accumulating human capital) and b represents the efficiency of human capital accumulation
The growth rate of human capital equals A) u(1 - b) - 1. B) 1 + b(1 - u). C) (1 + b)(1 - u). D) b(1 - u) - 1.