In the Solow model, if f(k) = 2k0.5, s = 0.3, n = 0.05, and d = 0.15, what is the value of k at equilibrium?
A. 9
B. 6
C. 3
D. 1
Answer: A
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We would expect
A. the demand for Coca-Cola to be relatively more elastic than the demand for soft drinks in general. B. no relationship between the price elasticity of demand for Coca-Cola and the price elasticity of demand for soft drinks in general. C. the demand for Coca-Cola to be relatively more inelastic than the demand for soft drinks in general. D. none of these to hold true.
Net revenue is defined as
A) marginal revenue minus marginal cost. B) total revenue minus marginal cost. C) total revenue minus total cost. D) gross revenue minus depreciation.
An isocost line reveals the
A) costs of inputs needed to produce along an isoquant. B) costs of inputs needed to produce along an expansion path. C) input combinations that can be purchased with a given outlay of funds. D) output combinations that can be produced with a given outlay of funds.
Which of the following is not an assumption of the productions possibilities frontier?
a. A country produces only two goods or types of goods. b. Technology does not change. c. The amount of available resources does not change. d. There is a fixed quantity of money.