According to the Solow model of economic growth, if per capita savings, s (Y/N)0, exceeds required steady state investment, (n + d) K/N, then
A) per capita output declines.
B) capital per capita increases.
C) capital per capita decreases.
D) steady state growth characterizes the economy.
B
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Recently economists have added what factor as a major explanation of economic growth?
A) the growth rate of labor B) the growth rate in labor and capital productivity C) technology D) the growth rate of capital
Value-added taxes were introduced in the European Union _____
a. to get rid of inefficient transaction taxes b. to harmonize tax structures among nations c. to make taxes more equitable d. all of the above e. a and b
Figure 10-4
Figure 10-4 shows the industry's supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S3, the firm is
a.
going to shut down.
b.
incurring losses.
c.
earning zero economic profits.
d.
earning economic profit greater than zero.
The risk premium for an investment:
A. is zero (0) for risk-averse investors. B. increases with risk. C. is negative for U.S. treasury securities. D. is a fixed amount added to the risk-free return, regardless of the level of risk.