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Suppose That 50 Percent of the National Income in an Economy

Question 114

Multiple Choice

Suppose that 50 percent of the national income in an economy goes to labor.If this economy has a Cobb-Douglas production function,________ of its national income should go to capital.


A) 20 percent
B) 30 percent
C) 50 percent
D) 15 percent

Correct Answer:

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