Author Question: From the Cobb-Douglas production function we learn that there are two sources that help explain ... (Read 78 times)

SO00 · **on:** Jun 30, 2018

From the Cobb-Douglas production function we learn that there are two sources that help explain cross-country differences in per capita income: ________ and ________.

A) capital; labor productivity
B) labor share of income; TFP
C) TFP; capital per person
D) labor per person; capital
E) none of the above

Question 2

The danger in using data to estimate the consequences of a proposed policy is that ________.

A) the data can reveal only the benefits of a policy, while estimating the policy's costs is important, also
B) policies change so often that data can never reveal which policies are the cause of which consequences
C) the public's expectations about the policy might influence the data, making the policy seem more or less appropriate than is actually the case
D) the proposed policy, if implemented, might cause unforeseeable changes in the relationships that were in operation when the data were produced