The most surprising outcome of the Solow growth model is that

A) the population growth rate has no effect on the standard of living.
B) the capital-labor ratio has no effect on the output-labor ratio.
C) a higher rate of national saving does not lead to a permanently higher rate of output growth.
D) a higher rate of depreciation lowers the capital-labor ratio, but not the output-labor ratio.


C

Economics

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Figure 9.6 shows an individual's demand curve for time per month spent telecommunicating while driving (talking on the car phone.) A car phone is useless except for talking with somebody who is not in the car

If calls are priced at ten cents per minute, what is the consumer surplus derived from talking? What is the most this person would pay for the car phone? Explain.

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Economic theories, or models, enable us to predict and to give reasonable explanations regarding economic variables

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