Help needed please answer all questions. Thank 10) Which of the following consti

Question

Help needed please answer all questions. Thank

10) Which of the following constitutes an input to the Cobb-Douglas production function? A) capital B) labor C) total factor productivity D) all of the above E) none of the above 11) 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 12) which of the following is true about total factor productivity (TFP)? A) it tells us how productive capital and labor are B) it is a more general and better measure of productivity than labor productivity C) it is not directly measurable D) all of the above E) none of the above

Explanation / Answer

10. Capital, Labor and total factor productivity all of this are inputs in Cobb - Douglas production function. As the Cobb–Douglas production function is a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or more inputs, particularly physical capital and labor, and the amount of output that can be produced by those inputs.

11. Both the capital and labor shares of income remain relatively constant over time in the Cobb - Douglas production function.

12. Total factor productivity (TFP) cannot be measured directly. Instead, it is a residual which accounts for effects on total output not caused by inputs. It captures how efficiently inputs are utilized, is a key indicator of competitiveness.So all of the above mentioned options are correct.

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