Reference no: EM133235925

True or False

Question 1. We have used the Cobb-Douglas production function because that is the only production function with constant returns to scale.

Question 2. The capital share and the labor share cannot be constant if there is a third factor of production. like costly;r entrepreneurial work.

Question 3. Increasing returns to scale imply that the marginal product of capital is constant or increasing in K.

Question 4. The failure of our production model to explain differences in income per capita across countries is largely,F due to the incorrect assumption of perfect competition.

Question 5. If we assume that TFP is identical across countries. then our model of pro- duction will dramatically underpredict crossecountry differences in output per capita.