The golden rule level of capital refers to
A) the level of capital that maximizes output per worker.
B) the level of capital that maximizes the standard of living.
C) the level of capital that maximizes consumption per worker in the steady state.
D) all of the above
E) none of the above
E
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A good or service or a resource is nonexcludable if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from benefiting from it. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.
Define the following terms and explain their importance to the study of economics.
a. Pure monopoly b. Barriers to entry c. Patent d. Natural monopoly e. Sunk costs
Explain the practice of tying and discuss why it is controversial
To increase total revenue, firms with ________ demand should lower price, and firms with ________ demand should increase price.
A. elastic; unit B. elastic; inelastic C. unit; inelastic D. inelastic; elastic