In an economy, if three-fourths of national income goes to labor, ...

[anshika]

In an economy, if three-fourths of national income goes to labor, and one-fourth to capital stock, the Cobb-Douglas production function for this economy will be:
 
  A) Y = A  1/4  K  3/4  L B) Y = A  K4  L3
  C) Y = A  K1/4  L3/4 D) Y = A  K1/3  L2/3

Question 2

Refer to the table above. After applying the second bag of fertilizer, the farmer experienced
 
  A) constant returns. B) diminishing returns.
  C) increasing returns. D) negative returns.

[ergserg]

Answer to Question 1

C

Answer to Question 2

B