What happens in the steady state to the capital—labor ratio, output per worker, and consumption per worker when each of the following events occur? You should assume that the steady-state capital—labor ratio is below the Golden Rule level
(a) Productivity falls. (b) Population growth falls. (c) The saving rate falls. (d) The depreciation rate falls.
(a) k, y, and c all fall.
(b) k, y, and c all rise.
(c) k, y, and c all fall.
(d) k, y, and c all rise.
You might also like to view...
The three main categories of government outlays are
A) net interest payments, government investment, and government consumption expenditures. B) net government subsidies, the government deficit, and government purchases. C) government purchases, transfer payments, and net interest payments. D) government consumption expenditures, government investment, and transfer payments.
The price-output combination that maximizes profits for a monopolist occurs at the point where
A) total revenues and total costs are equal. B) the difference between total revenues and total costs is the greatest. C) total revenues are the greatest. D) the elasticity of demand equals one.
If the shoplifter knows that the security guard has a reputation for sleeping on the job, what would his best response be
a. Steal b. Not steal c. Run d. Hide
Ever since the creation of the interstate highway system, the railroads have had to compete with trucks for freight shipments. Union Pacific, the nation's largest railroad, now offers door-to-door services to clients, using their own trains and trucks. This must be the result of:
A. horizontal merger. B. vertical merger. C. conglomerate merger. D. deregulation.