Assume That an Economy Experiences Both Positive Population Growth and Technological

question 17

Multiple Choice

Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the output per worker (Y/N) is

• A) growing at a rate of gA - gN.
• B) growing at a rate of 6 + gA + gN.
• C) growing at a rate of gN.
• D) growing at a rate of gA.
• E) constant.

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Definitions:

Learning Curve

The graphical representation of how an increase in learning comes from greater experience, leading to reduced costs over time.

Average Cost Curve

A graphical representation that shows how the average cost of producing a good varies with the quantity produced, usually U-shaped due to economies and diseconomies of scale.

Joint Production

A process where multiple products are produced together in the same operation, often resulting in by-products.

Economies of Scope

Economies of scope occur when producing a wider variety of goods or services reduces the cost of production due to shared inputs or knowledge.