If GDP increases in the model of public goods A) people are ...

[Yolanda]

If GDP increases in the model of public goods
 
  A) people are richer, so they need less public goods.
  B) there is substitution from private goods to public goods.
  C) if the government provides public goods optimally, public and private goods production both increase.
  D) all of the increase in GDP goes into public goods.

Question 2

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

[jennafosdick]

Answer to Question 1

C

Answer to Question 2

C

[Yolanda]

Gracias!

[isabelt_18]

Excellent