Q)If the economy is in a steady state, then A. both consumption per worker and capital per worker are decreasing. B. both consumption per worker and capital per worker are constant. C. consumption per worker is decreasing but capital per worker is constant. D. consumption per worker is constant but capital per worker is decreasing.

Q)If the economy is in a steady state, then A. both consumption per worker and capital per worker are decreasing. B. both consumption per worker and capital per worker are constant. C. consumption per worker is decreasing but capital per worker is constant. D. consumption per worker is constant but capital per worker is decreasing.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter16: Economic Growth

Section: Chapter Questions

Problem 5E

See similar textbooks

Similar questions

Assume the economy is initially in its balanced growth state. Suppose policymakers pursue policies that would increase the saving rate to s1=0.3. Draw a carefully-labelled diagram to illustrate the effect of the change in the saving rate on the economy in the long run. Explain the effect of the change in saving rate on steady-state capital per effective worker and steady-state consumption per effective worker?
5. Use the simple Solow model, with no population growth. The formula for steady-state consumption per worker (c*) as a function of output per worker and investment per worker is: c * = f(k*) - δk* c * = f(k*) + δk * c * = f(k*) ÷ nk* c * = k* - f(k)*
72) According to new growth theory, the accumulation of ________ capital is subject to diminishing returns at the ________ level, but not at the level of the economy as a whole. A) physical; firm B) technological; personal C) knowledge; firm D) physical; production 73) Because knowledge capital is nonexcludable and nonrival, firms have an incentive to ________ the research and development of other firms. A) make bids on B) not use C) ignore D) free ride on 74) When firms benefit from the results of research and development they didn't pay for, we say firms A) are litigious. B) free ride. C) invest in knowledge capital. D) maintain a level playing field. 75) For how long does a patent give a firm the exclusive legal right to a product? A) 10 years B) 17 years C) 20 years D) 50 years 76) A copyright grants the creator of a book, film, or piece of software exclusive legal rights to use the creation for how long? A) 10 years B)…
21.According to some modern theories of long run economic growth, successive increments of investment have________ returns since some fixed costs are ________ for subsequent firms.A. constant; identicalB. increasing; higherC. increasing; lowerD. decreasing; higher
Productivity is one of the most important factor in any economy. This can be as part of labor or other factors of production. Explain that how capital can enhance productivity in an economy
The economy's real GDP was $140 billion in 2019 and $300 billion in 2020. Its population was 15 million in 2019 and 20 million in 2020. What is the growth rate of real GDP per capital from 2019 to 2020?v Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Explain how higher saving leads to a higher standard of living. How might a higher savings rate lead to a lower standard of living? Does a higher rate of saving lead to higher growth temporarily or indefinitely?
ANSWER B AND C ONLY! a. What are the ways in which a government policymaker can try to raise the growth in living standards in a society? b. What is the relevance of productive and allocative efficiency to the growth process? c. What is meant by economies of scale and what is the importance of this concept to economic growth?
A) If you are given a choice to live in a country with high level of GDP and low growth rate or to live in a low level of GDP and a high growth rate, which option would you choose and why? B) Assume a hypothetical society that decides to reduce consumption (production of consumption goods) and increase investment (production of capital goods). 1) How would this change affect economic growth? 2) What groups in society would benefit from this change? What groups might be hurt?
Assume a hypothetical society that decides to reduce consumption (production of consumption goods) and increase investment (production of capital goods). i. How would this change affect economic growth? ii. What groups in society would benefit from this change? What groups might be hurt?
Problem 2 Assume that total output is determined by the formula: Total Output = Number of Workers x Productivity (a) If the workforce is growing by 1 percent a year but productivity doesn’t improve, how fast can output increase? (b) If productivity increases by 3 percent and the number of workers increases by 1 percent a year, how fast will output grow?
What are three generators of economic growth? List and explain them. What are three determinants of business investment? List and explain them