Author Question: If a Cobb-Douglas production function has alpha = 0.34 and beta = 0.42, then a 1 increase in inputs ... (Read 92 times)

debasdf · **on:** Jul 1, 2018

If a Cobb-Douglas production function has alpha = 0.34 and beta = 0.42, then a 1 increase in inputs results in a ________ change in output.

A) 0.8
B) 8
C) 0.76
D) -0.76

Question 2

Which of the following is not a reason for the establishment of intergovernmental transfer programs?

a. Higher level governments want to encourage lower governments to undertake certain programs.
b. Taxes are harder to avoid at higher levels of government.
c. To provide for national defense resources utilized at the local level.
d. Equalization of resources between richer and poorer localities